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Interim govt must act swiftly on telecom reforms
The interim government should swiftly implement reforms in the telecommunications sector by eliminating unnecessary licensing, reducing taxes, and granting spectrum free of cost -- without waiting for an election, according to a top multinational telecom CEO.
Interim govt must act swiftly on telecom reforms
Says Veon Group CEO Kaan Terzioğlu in an interview with The Daily Star
Kaan Terzioğlu
The interim government should swiftly implement reforms in the telecommunications sector by eliminating unnecessary licensing, reducing taxes, and granting spectrum free of cost -- without waiting for an election, according to a top multinational telecom CEO.
"I really think that this interim period is very important to take decisions, and I hope it will not be wasted by waiting for another cycle of elections," said Kaan Terzioğlu, group CEO of Banglalink's parent company Veon, in a recent interview with The Daily Star.
"And I also believe that we need to strengthen the deployment of infrastructure, and the worst thing we can do now is to go for another cycle of spectrum auctions and again put an incredible burden on the industry."
"I think if you want to deploy further 4G or 5G, we have to make spectrum free and available to telecom operators," he added.
When asked what reforms he would suggest for the interim government in the telecom and internet sectors, he identified two key issues.
"The telecom industry today contributes 1 percent of Bangladesh's GDP but pays 5 percent in taxes. So, it is the highest-taxed industry in the entire world, and I think this burden, on top of high spectrum costs, makes the industry suffer. So, this is number one."
Secondly, he pointed out that the industry is fragmented into small segments, from transmission to fibre to interconnect, with multiple licences required to operate, which disrupts the value chain.
"I think a simplification of the licensing scheme and a reduction of taxes is a must for the country's future."
"If you look at the list of all the licences needed to operate in the country, you need a licence for deploying fibre, a licence to operate networks, a licence for interconnect, and a licence for towers," Terzioğlu said.
He said that no similar structures exist anywhere in the world. In his view, Bangladesh should align itself with global best practices, which the GSMA can provide by showcasing how the most efficiently managed countries operate.
According to him, Bangladesh is an extremely resilient country.
"Its strength comes from its people, its youth, and we need to enable them through better networks and better internet. And that's why I think a lot of responsibility falls to us but also to the interim government," said Terzioğlu.
"We are as committed as ever, perhaps even stronger than ever, for Bangladesh. I see the country's future as bright," the CEO said.
Asked about the imminent entry of Starlink in Bangladesh, he said space coverage is essential for a country like Bangladesh.
"This will be good for the country, and we are ready to take our role in that. As you may have noticed, we have signed a Direct-to-Cell contract with Starlink for Ukraine, and I believe it is also important for Bangladesh to have a Direct-to-Cell capability, apart from satellite internet," he added.
Direct-to-Cell satellite service allows satellites to connect directly to regular mobile phones, ensuring coverage in remote areas without extra hardware.
It enhances emergency communication, prevents network blackouts, and integrates with terrestrial networks for seamless global mobile connectivity.
"These are, of course, new technologies, and terrestrial networks are prone to certain issues during emergencies, including earthquakes and wartime. In these situations, it is very important to have an emergency capability utilising satellite network. That is why we started this relationship in Ukraine, and we are very happy with it," he added.
He also mentioned the adverse effects of internet shutdowns on the digital sector under the previous government.
"In the previous environment, we often had instructions to shut down the internet. When you shut down the internet, you are shutting down the future of the digital economy."
"Because how can you develop an ecosystem if the players are not sure that tomorrow they will be able to transact online? I think now, again, it's a period of opportunity because we can sustainably build businesses that rely on online capabilities. I think this is a new era, and we have to take a fresh look at this, from the capabilities of e-commerce, to mobile payments, to financing available to millions of people. Now, there is an opportunity to really focus on these areas."
He also addressed the dominance of a single company and emphasised avoiding duplication in the telecommunications network infrastructure in Bangladesh.
"It is actually not only the issue of there being one big player, but also that our hands are tied in terms of competing on the service level. I think Grameenphone, over the last three decades, has done a great service in the country. But of course, when you see a marketplace where one player has a 55 percent market share, but 98 percent of the market's profits, you understand that something is broken."
"I would rather solve this problem by creating a liberal environment where we can freely compete in everything that we do best, rather than trying to stop a good service company that has done a good job. Open up opportunities so that we can compete better, rather than stopping something," said Terzioğlu.
He mentioned that in China, with a population of 1.4 billion, there are three operators and a single infrastructure provider serving the entire country. Similarly, in India, which also has a population of 1.4 billion, there are only two operators and one infrastructure provider.
"It is not rocket science. I think Bangladesh needs to consolidate, have a redundant but unified national infrastructure company, and not necessarily three or four operators. I think two operators will be enough in this market. But again, it requires a liberal understanding so that we can discuss with our counterparties how to create this environment," he said.
He added that having more than one operator for a population more than 100 million is an inefficient use of resources for a country like Bangladesh.
"We buy the same equipment twice, three times, four times. Why do we need to do this? Bangladesh is not a country that can afford to throw money out of the window. We can buy the same equipment and easily service more people. And this is also something that we should look at," said the CEO.
Says Veon Group CEO Kaan Terzioğlu in an interview with The Daily Star
Kaan Terzioğlu
The interim government should swiftly implement reforms in the telecommunications sector by eliminating unnecessary licensing, reducing taxes, and granting spectrum free of cost -- without waiting for an election, according to a top multinational telecom CEO.
"I really think that this interim period is very important to take decisions, and I hope it will not be wasted by waiting for another cycle of elections," said Kaan Terzioğlu, group CEO of Banglalink's parent company Veon, in a recent interview with The Daily Star.
"And I also believe that we need to strengthen the deployment of infrastructure, and the worst thing we can do now is to go for another cycle of spectrum auctions and again put an incredible burden on the industry."
"I think if you want to deploy further 4G or 5G, we have to make spectrum free and available to telecom operators," he added.
When asked what reforms he would suggest for the interim government in the telecom and internet sectors, he identified two key issues.
"The telecom industry today contributes 1 percent of Bangladesh's GDP but pays 5 percent in taxes. So, it is the highest-taxed industry in the entire world, and I think this burden, on top of high spectrum costs, makes the industry suffer. So, this is number one."
Secondly, he pointed out that the industry is fragmented into small segments, from transmission to fibre to interconnect, with multiple licences required to operate, which disrupts the value chain.
"I think a simplification of the licensing scheme and a reduction of taxes is a must for the country's future."
"If you look at the list of all the licences needed to operate in the country, you need a licence for deploying fibre, a licence to operate networks, a licence for interconnect, and a licence for towers," Terzioğlu said.
He said that no similar structures exist anywhere in the world. In his view, Bangladesh should align itself with global best practices, which the GSMA can provide by showcasing how the most efficiently managed countries operate.
According to him, Bangladesh is an extremely resilient country.
"Its strength comes from its people, its youth, and we need to enable them through better networks and better internet. And that's why I think a lot of responsibility falls to us but also to the interim government," said Terzioğlu.
"We are as committed as ever, perhaps even stronger than ever, for Bangladesh. I see the country's future as bright," the CEO said.
Asked about the imminent entry of Starlink in Bangladesh, he said space coverage is essential for a country like Bangladesh.
"This will be good for the country, and we are ready to take our role in that. As you may have noticed, we have signed a Direct-to-Cell contract with Starlink for Ukraine, and I believe it is also important for Bangladesh to have a Direct-to-Cell capability, apart from satellite internet," he added.
Direct-to-Cell satellite service allows satellites to connect directly to regular mobile phones, ensuring coverage in remote areas without extra hardware.
It enhances emergency communication, prevents network blackouts, and integrates with terrestrial networks for seamless global mobile connectivity.
"These are, of course, new technologies, and terrestrial networks are prone to certain issues during emergencies, including earthquakes and wartime. In these situations, it is very important to have an emergency capability utilising satellite network. That is why we started this relationship in Ukraine, and we are very happy with it," he added.
He also mentioned the adverse effects of internet shutdowns on the digital sector under the previous government.
"In the previous environment, we often had instructions to shut down the internet. When you shut down the internet, you are shutting down the future of the digital economy."
"Because how can you develop an ecosystem if the players are not sure that tomorrow they will be able to transact online? I think now, again, it's a period of opportunity because we can sustainably build businesses that rely on online capabilities. I think this is a new era, and we have to take a fresh look at this, from the capabilities of e-commerce, to mobile payments, to financing available to millions of people. Now, there is an opportunity to really focus on these areas."
He also addressed the dominance of a single company and emphasised avoiding duplication in the telecommunications network infrastructure in Bangladesh.
"It is actually not only the issue of there being one big player, but also that our hands are tied in terms of competing on the service level. I think Grameenphone, over the last three decades, has done a great service in the country. But of course, when you see a marketplace where one player has a 55 percent market share, but 98 percent of the market's profits, you understand that something is broken."
"I would rather solve this problem by creating a liberal environment where we can freely compete in everything that we do best, rather than trying to stop a good service company that has done a good job. Open up opportunities so that we can compete better, rather than stopping something," said Terzioğlu.
He mentioned that in China, with a population of 1.4 billion, there are three operators and a single infrastructure provider serving the entire country. Similarly, in India, which also has a population of 1.4 billion, there are only two operators and one infrastructure provider.
"It is not rocket science. I think Bangladesh needs to consolidate, have a redundant but unified national infrastructure company, and not necessarily three or four operators. I think two operators will be enough in this market. But again, it requires a liberal understanding so that we can discuss with our counterparties how to create this environment," he said.
He added that having more than one operator for a population more than 100 million is an inefficient use of resources for a country like Bangladesh.
"We buy the same equipment twice, three times, four times. Why do we need to do this? Bangladesh is not a country that can afford to throw money out of the window. We can buy the same equipment and easily service more people. And this is also something that we should look at," said the CEO.
