[🇧🇩] Telecommunication Industry in Bangladesh

[Saif]

BTRC approves terms for auditing Teletalk

The Bangladesh Telecommunication Regulatory Commission (BTRC) has finalised key steps for auditing Teletalk, including setting goals, outlining the scope and detailing tasks for the process.

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BTRC approves terms for auditing Teletalk

The Bangladesh Telecommunication Regulatory Commission (BTRC) has finalised key steps for auditing Teletalk, including setting goals, outlining the scope and detailing tasks for the process.

The telecom regulator recently approved the revised terms of reference (TOR), scope of service, expression of interest (EOI), and request for proposal (RFP) for appointing an auditor to conduct the operator's procedure and system audit.

The approval was granted during a recent commission meeting, following recommendations from the information system audit coordination committee, which reviewed and refined the documents.

For the first time, Teletalk, the only state-owned mobile network operator, will face scrutiny over operational challenges and financial liabilities.

According to the BTRC, Teletalk owes the telecom regulator about Tk 1,849 crore in unpaid licensing fees, revenue sharing, spectrum fees and contributions to the Social Obligation Fund.

In April 2024, a six-member committee was formed to draft the TOR, EoI and RFP in compliance with Public Procurement Rules 2008 and other government regulations.

The documents were ultimately finalised after a series of meetings and revisions.

This audit initiative aims to assess and enhance the operational transparency and efficiency of Teletalk, ensuring better compliance with regulatory standards, according to an official of the BTRC.

The telecom regulator has also decided to carry out information system audits on Grameenphone and Robi Axiata in the years since 2015, and form committees to start the process of appointing auditors.

The decision to carry out the audits comes even though the claims of the first audits into the operators have not been settled yet.

The telecom regulator ran separate audits on the two operators from their inception to December 2014 and claimed Tk 12,579 crore from Grameenphone and Tk 867 crore from Robi.

The claims include the amounts for unpaid annual spectrum fees, value-added tax and revenue sharing. However, both operators disputed the sum and claimed that they did not evade any taxes.

The dispute triggered a legal battle between the operators and the BTRC, with the companies filing lawsuits in 2019.

Based on the audit of Grameenphone from 1997 to 2014, the BTRC sent a demand notice in April 2019, asking it to clear the payments.

Later, Grameenphone filed a case before the district court against the claim. The Supreme Court in November that year ordered the operator to give Tk 2,000 crore in three months to the commission.

Afterward, the appellate division directed the largest mobile network operator in the country to deposit Tk 1,000 crore by February 2020 and another Tk 1,000 crore by May 2020. Grameenphone complied.

Of the Tk 12,579 crore, the operator has not yet cleared the more than Tk 6,100 crore slapped as late fees.

Additionally, as of April this year, it paid more than Tk 2,392 crore out of Tk 4,085 crore owed to the National Board of Revenue.

Out of Tk 867 crore, Robi, the second-largest operator of Bangladesh, paid Tk 138 crore in five instalments by May 2020 to comply with the order of the High Court Division.

The telecom regulator also conducted audits on Banglalink from 1996 to 2019 and asked the operator to pay more than Tk 820 crore last year.

It has already paid a principal amount of Tk 390 crore in instalments, according to an official of the operator.

Banglalink is trying to mutually resolve the BTRC's audit outcome while Grameenphone has already initiated negotiations regarding late fees as both parties seek an out-of-court settlement on the matter.​

 

[Saif]

Stakeholders outraged by proposed tax hike on mobile phone use

If implemented, total tax burden on mobile phone users will be around 56.3%

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Stakeholders outraged by proposed tax hike on mobile phone use
If implemented, total tax burden on mobile phone users will be around 56.3%

The government's move to raise the supplementary duty (SD) on mobile talk time and internet services has sparked outrage among mobile operators, consumers, and digital service providers.

The National Board of Revenue (NBR) is all set to increase the SD from 20 percent to 23 percent, just six months after increasing it from 15 percent to 20 percent, which experts view as a constraint for the industry.

Currently, customers pay Tk 138 for Tk 100 worth of mobile voice or internet services, factoring in 15 percent VAT, 20 percent SD, and a 1 percent surcharge.

When additional taxes, such as revenue sharing and minimum taxes, are included, the total tax burden surpasses 54 percent, one of the highest in the world, according to industry experts.

If implemented, the proposed hike will raise this figure to around 56.3 percent, further straining consumers and the industry.

Leading stakeholders of the telecom industry have criticized the 3-percentage-point supplementary duty hike.

The secretary general of the Association of Mobile Telecom Operators of Bangladesh, Lt Col Mohammad Zulfikar (retd), believes that further tax increases, amid the country's ongoing economic challenges, will undoubtedly harm both the mobile industry and its subscribers.

"The sector is already burdened with heavy taxes and duties. In recent months, nearly six million subscribers have left the network, signalling the sector's declining growth. This decision could severely impact the government's revenue generation from the sector."

"We urge the authorities to reconsider the consequences and avoid imposing such burdens."

Bdjobs CEO Fahim Mashroor said that mobile phone users in Bangladesh already face the highest tax burden among all Asian countries.

The additional 3 percentage-point hike in tax will further escalate data costs for 90 percent of the country's internet users, potentially tarnishing the government's pro-youth image, he said.

"At the recent D8 Summit, the chief adviser highlighted the transformative role of the internet and AI in education and healthcare. But certain bureaucrats within the NBR seem disconnected from this progressive vision."

The rising internet prices may provoke discontent among Generation Z, who have previously used the internet to challenge restrictive governance, he added.

"This decision risks alienating a key demographic and fueling further unrest."

Pathao CEO Fahim Ahmed said the decision to raise supplementary duty on mobile top-ups is short-sighted.

Bangladesh already has the highest telecom taxes in the region, which limits internet adoption, he said.

"As the largest consumer tech platform in the country, we have observed how high costs constrain our market potential to just a fraction of what it could be."

The decision made by the interim government — which was expected to introduce reforms after taking charge six months ago — is taking us in the opposite direction, he said.

"We urgently call for its reversal."

Banglalink Chief Corporate and Regulatory Affairs Officer Taimur Rahman opined that the increased supplementary duty would raise talk time expenses, further reducing affordability for customers already struggling with inflation.

Telecom services have been instrumental in driving the country's economic growth and fostering digital inclusion, he said.

"The supplementary duty was increased just a few months ago, creating challenges for both the industry and its users. This move risks widening the digital divide, hindering sector growth, and reducing government revenue."

"We strongly urge the government to reconsider this decision to ensure sustained economic progress and the advancement of digital inclusion," he said.

Bangladesh Mobile Phone Consumers' Association President Mohiuddin Ahmed views the NBR's actions as a reflection of a troubling authoritarian approach.

"Such reckless decisions bear the hallmarks of a bygone fascist regime. With 48 percent of the population still without internet access, this excessive taxation will only exacerbate the digital divide," he said.

Unless the government abandons this irrational and oppressive policy, citizens and consumer groups will have no choice but to take to the streets, Ahmed said.

"It is really unfortunate to see that the taxation regime for the telecom sector continues to defy rational thinking," Robi Chief Corporate and Regulatory Officer Shahed Alam said.

While there are sustained calls for price reductions, the prospect of additional tax burdens on consumers sends a contradictory and confusing message, he said.

"Time and again, we have seen that increasing consumer tax burdens in the telecom sector leads to reduced spending by mobile phone users. This, in turn, negatively impacts the financial health of mobile phone operators and decreases government revenue."

While mobile operators face financial struggles, expectations regarding service quality continue to rise, he said.

"How can operators invest in next-generation networks if we are being systematically weakened by a taxation regime that clearly lacks purpose and direction?" he questioned.

Grameenphone's Chief Corporate Affairs Officer Tanveer Mohammad said: "At a time when the economy is still recovering and national inflation remains above 10 percent, this additional burden will pose significant challenges for consumers already struggling with daily expenses."

"If the SD is increased, it will be the second time in the last seven months."

"It was increased by 5 percent in June 2024, and now, if an additional 3 percent is imposed, as reported in the media, it will result in a 9.2 percentage point increase in indirect taxes on customers within just seven months," he said.

"For every Tk 100 spent on mobile usage, customers will now have to pay Tk 142.45 (inclusive of VAT, SD, and SC), compared to Tk 133.25 before the last budget. As an industry committed to fostering digital inclusion, we believe this move will hinder progress and widen the digital divide."

"We urge the government to reconsider this decision in the interest of customers and to support the broader goal of building a digitally inclusive society."​

 

[Saif]

BTRC tightens rules for telcos to improve services

The telecom regulator has drafted stricter quality of service (QoS) benchmarks for mobile operators to better protect users’ interests though the companies fared badly in previous metrics.

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BTRC tightens rules for telcos to improve services

The telecom regulator has drafted stricter quality of service (QoS) benchmarks for mobile operators to better protect users' interests though the companies fared badly in previous metrics.

For the first time, the Bangladesh Telecommunication Regulatory Commission (BTRC) has also included transmission networks and broadband service providers under the QoS framework.

Key changes in the draft include lowering the call drop rate ceiling from 2 percent to 1 percent and raising the call setup success rate standard from 97 percent to 98 percent. The voice call setup time has also been tightened from 8 seconds to 7 seconds. Additionally, a new benchmark has been introduced for call setup time in Voice over Long-Term Evolution (VoLTE) and beyond, setting the limit at no more than 3 seconds.

VoLTE is a technology that enables high-quality voice calls over 4G LTE networks instead of traditional voice networks. It offers faster call setup, clearer audio quality, and the ability to use voice and data services simultaneously, enhancing overall mobile communication efficiency and user experience.

While the standard for mobile internet download speed remains unchanged, the upload speed requirement has been increased from 2 Mbps to 4 Mbps. Also, for the first time, mobile data latency has been capped at under 50 milliseconds, enhancing real-time communication quality.

In the broadband sector, Internet Service Providers (ISPs) must now ensure 75 percent of the subscribed download speed and 50 percent of the upload speed.

According to the draft regulation, beyond safeguarding subscriber interests, the updated standards aim to create an environment that encourages competition, drives innovation, and fosters trust among stakeholders. The regulatory objectives also aim to improve subscribers' satisfaction, uphold service quality, ensure consumer protection, promote competition, and enhance trust within the telecommunications sector in Bangladesh.

Additionally, the BTRC may verify and assess the performance of services to determine whether service providers comply with the defined benchmarks for QoS parameters outlined in these regulations. This assessment may occur randomly or in response to complaints about QoS issues in specific zones or areas. It can be conducted through inspections, drive tests, sample tests, or other measurement methods by officers, employees, or agencies appointed by the BTRC or jointly with service providers.

The BTRC may also instruct service providers to conduct additional specialised QoS assessment tests, surveys, and submit subsequent reports as deemed necessary. Any service provider that fails to maintain the QoS standards, submit the required reports, or comply with any provisions outlined in these regulations shall be liable for breaching these regulations. The submission of inaccurate, misleading, or incomplete information shall also be deemed a violation. Breaching any of these regulations shall constitute an offence, and the person responsible shall be liable for administrative fines under the Bangladesh Telecommunication Regulation Act, 2001.

Mustafa Mahmud Hussain, a telecom expert, said the draft guideline is a significant step toward enhancing the telecommunication services landscape in Bangladesh. With fine-tuning and an expanded scope, it has the potential to align Bangladesh's QoS framework with global standards, fostering consumer trust and driving competitive growth in the sector.

"While the regulation accounts for 4G, VoLTE, and fixed internet, provisions for satellite broadband (e.g., Starlink) and IoT connectivity should be added, given their growing relevance in the evolving telecommunications ecosystem," he added. Hussain noted this draft guideline aligns with ITU standards and offers actionable insights to further enhance the customer experience.

Although the BTRC has implemented more stringent regulations, mobile operators are failing to even maintain the current standards. Hossain Sadat, head of public and regulatory affairs at Grameenphone, said they were included in the consultation process and received a new version of the QoS regulation.

"We are assessing this version and will provide our response accordingly. We look forward to continuing the consultation process to be able to conclude on an industry-aligned QoS regulation, making it rational and sustainable," he said.

Local mobile operators performed poorly in the telecom regulator's latest drive test to assess service quality, reinforcing users' claims of experiencing substandard services. The drive tests were conducted between February 14 and June 5 last year across Dhaka city corporations, Narayanganj, Keraniganj, and Savar upazilas with the BTRC's newly acquired system from Germany, purchased for 1.5 million euros.

Robi performed the best, failing in only five key performance indicators (KPIs) out of 40 across four areas. Market leader Grameenphone failed in six KPIs, Banglalink in 14, and Teletalk in a staggering 26, according to the test results.

For internet services, only state-owned Teletalk failed to meet the BTRC's benchmarks, with Robi performing the best. However, officials of the operators have expressed disagreement with the findings, claiming that the BTRC's results do not accurately reflect the network's performance and could lead to public confusion.​

 

[Saif]

5G implementation: spectrum allocation & infrastructure in Bangladesh

Unprecedented improvements in speed, connectivity, and digital innovation are anticipated with the introduction of 5G technology. Given the potential for economic transformation that 5G technology holds, nations are vying to build strong 5G networks. Bangladesh, a fast-developing country aspiring f

thefinancialexpress.com.bd

5G implementation: spectrum allocation & infrastructure in Bangladesh
Yemad Fayed Ahmed
Published :
Jan 16, 2025 21:56
Updated :
Jan 16, 2025 21:56

Unprecedented improvements in speed, connectivity, and digital innovation are anticipated with the introduction of 5G technology. Given the potential for economic transformation that 5G technology holds, nations are vying to build strong 5G networks. Bangladesh, a fast-developing country aspiring for digital inclusivity, has started the rollout of 5G. However, there are many obstacles in the way of obtaining extensive 5G coverage, chief among them being infrastructure constraints, customer preparedness, and delays in spectrum allocation. This article explores these challenges, assesses the consequences for the country's digital future, and contrasts Bangladesh's advancements with those of its neighbour, India.

With more than 190 million mobile users and over 127 million internet subscribers as of 2024, Bangladesh has a sizable user base. Although these numbers demonstrate the nation's digital potential, the adoption of cutting-edge technology like 5G exposes hidden difficulties. By 2025, smartphone adoption is expected to have increased to 63 per cent from 47 per cent in 2024. However, 5G-enabled handsets only make up 3.4 per cent of all mobile shipments, suggesting that consumers are not yet fully prepared for the new technology.

As of 2024, 55 per cent of mobile customers in Bangladesh are utilising 4G services, indicating a rather delayed deployment of 4G networks. Although this is an improvement above the 37 per cent in 2020, it still highlights how slowly technology is changing. Concerns regarding Bangladesh's capacity to stay competitive in the digital race are raised by the estimated 6 per cent 5G coverage by 2025, which stands in sharp contrast to the swift developments observed in nearby nations.

Spectrum allocation delays are one of the main obstacles to Bangladesh's 5G deployment. Specific frequency bands for 5G have been identified by the Bangladesh Telecommunication Regulatory Commission (BTRC). However, providing guidelines and licenses has proven to be extremely difficult. Although the March 2022 spectrum auction was a significant advancement, regulatory obstacles have postponed the commercial implementation of 5G services.

There are wider ramifications for the country's digital ecosystem from these delays. Telecom providers cannot invest in the infrastructure needed for 5G deployment if they do not have timely access to the relevant spectrum. The problem is made worse by the absence of precise regulatory norms, which leaves stakeholders in the dark and impedes advancement.

Another major obstacle to the successful rollout of 5G in Bangladesh is the country's current telecommunications infrastructure. With noticeable gaps in rural areas, the network mostly supports 4G services. Service quality is still uneven even in cities, indicating the need for significant improvements to meet 5G technology's high-speed, low-latency requirements.

Connectivity in rural areas presents a special difficulty. The infrastructure required for even basic mobile services is sometimes lacking in rural areas, despite housing a significant section of the population. In addition to impeding the rollout of 5G, this digital gap also restricts the possibilities for equitable economic growth and digital transformation.

Customer preparedness is another important consideration in the deployment of 5G. Only 3-4 per cent of Bangladeshi mobile subscribers now own handsets that support 5G. This low percentage is indicative of the larger problem of accessibility and affordability. A sizable section of the population cannot afford the high prices of 5G-compatible devices and data subscriptions, rendering the technology unaffordable.

Furthermore, consumers are not well-informed about the advantages of 5G. In Bangladesh, advanced applications like virtual reality (VR), augmented reality (AR), and Internet of Things (IoT) solutions are still mostly untapped. The adoption of 5G is further slowed by this lack of demand, which leads to a situation where operators are reluctant to invest in 5G infrastructure in the absence of a sizable user base.

India is a helpful reference point for comprehending the prospects and difficulties associated with the deployment of 5G. India's digital ecosystem is significantly more developed than Bangladesh's, with over 1 billion mobile users and an estimated 84 per cent smartphone penetration rate by 2025. Since late 2021, 5G services have been rapidly deployed in India, highlighting the significance of aggressive legislation and strong infrastructure.

India's success in implementing 5G is a result of several things. Telecom providers now operate in a favourable environment thanks to the government's prompt spectrum allotment and clear regulations. India has a ready market for 5G services because of its greater smartphone penetration rate. Finally, the growth of digital infrastructure, especially in rural regions, has been made possible by solid public-private partnerships.

India has excellent teachings that Bangladesh can learn from. Overcoming the obstacles of 5G deployment requires putting a high priority on regulatory changes, encouraging cooperation between the public and private sectors, and funding consumer education.

The digital economy of Bangladesh will be significantly impacted by the successful rollout of 5G technology. 5G has the potential to revolutionise a number of industries, from improving telemedicine and e-commerce to facilitating smart cities and sophisticated manufacturing. However, overcoming the aforementioned obstacles is necessary to achieve these advantages.

Bangladesh must give the development of digital infrastructure in rural areas top priority in order to guarantee inclusive growth. In order to close the digital divide and give rural populations access to 5G technologies, public-private collaborations can be extremely important.

Accelerated 5G implementation requires clear regulatory standards and timely spectrum allocation. To remove obstacles and foster an atmosphere that encourages investment in 5G networks, policymakers must interact with stakeholders.

Adoption can only be accelerated by informing customers about the advantages of 5G and lowering the cost of equipment. Together with focused awareness campaigns, subsidies for 5G-compatible devices and data plans can aid in removing these obstacles.

Lastly, maximising the potential of 5G requires promoting cooperation between the public sector, private sector, and academic institutions. Adoption of 5G can be accelerated and economic revolution can be fueled by creative solutions catered to Bangladesh's particular demands.

On its path to digital transformation, Bangladesh is at a turning point. Even though infrastructural constraints, customer preparedness, and spectrum allotment present formidable obstacles, they are not insurmountable. Bangladesh can unleash the enormous potential of this game-changing technology by learning from regional achievements and implementing 5G holistically.

Although there may be challenges along the way to 5G, the benefits will make the effort worthwhile. Bangladesh can establish itself as a leader in digital innovation and clear the path for a better, more connected future with careful planning, cooperation, and investment.

The writer is a seasoned Public Relations professional.​

 

[Saif]

Need for better and cheaper telecom services

The Bangladesh Telecommunication Regulatory Commission (BTRC)'s introduction of stricter Quality of Service (QoS) standards is a crucial step towards improving the services provided by mobile phone operators and internet service providers (ISPs) in Bangladesh. The draft regulation titled BTRC Quali

thefinancialexpress.com.bd

Need for better and cheaper telecom services
FE
Published :
Jan 19, 2025 22:13
Updated :
Jan 19, 2025 22:13

The Bangladesh Telecommunication Regulatory Commission (BTRC)'s introduction of stricter Quality of Service (QoS) standards is a crucial step towards improving the services provided by mobile phone operators and internet service providers (ISPs) in Bangladesh. The draft regulation titled BTRC Quality of Service Regulations, 2024 comes after years of complaints against poor service rendered by mobile phone operators. Despite the massive boom in the number of mobile phone and internet users over the decades, the industry has fallen far short of meeting consumer expectations. From high call rates to frequent call drops and from poor network coverage to slow internet speeds, the list of subpar services is long. In recent years call drops have become a routine affair, prompting an increasing number of users to vent their frustration and demand compensation for unexpected dropped calls. The BTRC's proposal to enforce a new QoS framework, equipped with stringent penalties for non-compliance, is a welcome step towards addressing these concerns.

The draft regulation introduces several key changes, including a reduction in the allowable call drop rate from 2.0 per cent to 1.0 per cent and a more demanding call setup time, from eight seconds to seven seconds. For more advanced services like Voice over Long-Term Evolution (VoLTE), the benchmark time has been set at three seconds for faster, clearer voice calls. Additionally, the cap on mobile data latency has been tightened to 50 milliseconds, marking a critical improvement in real-time communication quality. Another notable improvement is the emphasis on mobile internet speed, with the required upload speed doubled to 4Mbps. Once effectively implemented, the upgrading will not only enhance the user experience for individuals and businesses relying on mobile data but also put pressure on telecom operators to invest in infrastructure improvements. The new rules extend beyond just mobile services to broadband connections, where ISPs will now be required to deliver 75 per cent of the subscribed download speed and 50 per cent of the upload speed, ensuring that users get what they pay for.

While these changes are promising, it is important to recognise the challenges that lie ahead. The BTRC will need to ensure rigorous enforcement of these new regulations. Regular inspection, drive tests and random sample measurements will be necessary to monitor compliance. Non-compliance, including the submission of inaccurate information or failure to meet required standard, will result in penalties in order to serve as a deterrent to errant operators. The stakeholders and the public have until February 15 to provide feedback on the draft regulation.

An indispensable tool for everyday communication, mobile phone has facilitated the growth of a burgeoning digital economy, encompassing mobile money transactions, e-commerce, e-agriculture, and a wide array of app-based services. To ensure continued growth and accessibility, it is crucial to ensuring quality and affordable services. To this end, a rational tax and duty structure could also play a vital role. Currently, when a mobile phone user recharges with Tk 100, approximately Tk 28 is remitted to the National Board of Revenue (NBR) as taxes. In total, mobile network operators contribute over Tk 54 from every Tk 100 of revenue to the government in the form of taxes and fees. This significant tax burden is a major contributing factor to the high call rates and internet charges faced by consumers. Therefore, a review of the current tax structure is needed to make telecommunication services affordable. An improved and affordable cellular service will not only enhance the user experience but also contribute significantly to the country's economic and social development by facilitating greater access to information, education, and digital opportunities.​

 

[Saif]

Handset production rose 17% in 2024 but challenges persist

Handset production in Bangladesh increased by 17.17 percent year-on-year in 2024, but local assemblers faced significant challenges due to sluggish sales and the rapid expansion of the grey market.

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Handset production rose 17% in 2024 but challenges persist

Handset production in Bangladesh increased by 17.17 percent year-on-year in 2024, but local assemblers faced significant challenges due to sluggish sales and the rapid expansion of the grey market.

The local plants produced 2.73 crore units in 2024, up from 2.33 crore in 2023.

However, the production volume has dropped compared to the preceding years as it had reached an all-time high of 3.16 crore in 2022 and 2.95 crore in 2021.

The latest increase in production did little to raise hopes for local assemblers as an increase in taxes, alongside the rise in the exchange rate of the US dollar against the taka, upended capacity expansion and profits.

Bangladesh's journey in handset manufacturing began in 2017, when the government offered substantial tax benefits to encourage local production.

This policy spurred a meteoric rise in output, from only 40,000 handsets produced by Walton in 2017 to an impressive 3.16 crore units in 2022.

Global brands like Samsung, Oppo, Vivo, and Tecno established manufacturing plants in the country to capitalise on the growing market.

However, the sector experienced a sharp downturn in 2023, with production declining by 26.35 percent year-on-year.

This downturn was driven by several factors, including the high currency exchange rate, an increase in taxes, and a decrease in consumer purchasing power.

Consumers significantly tightened their spending owing to inflation remaining persistently high for the past two years.

The price of handsets has increased by about 40 percent in some cases due to the US dollar price hike.

Despite modest growth of 7 percent to 8 percent in overall sales, the sector struggled under the weight of these challenges, said Rizwanul Haque, vice-president of the Mobile Phone Industry Owners' Association of Bangladesh.

According to him, local assemblers now face a complex tax structure, including VAT of up to 7.5 percent at the factory level, customs duties of 8 percent to 10 percent on components, and an additional 5 percent VAT at each stage of sale.

In contrast, neighbouring countries like India benefit from lower tax rates, making their products more competitive.

The dominance of distributors and retailers further squeezed local producers' profitability.

Meanwhile, the grey market, offering cheaper, often smuggled phones, continues to expand unchecked, undermining legitimate sales, Haque said.

According to the association, the grey market now accounts for 35 percent of the total handset demand in Bangladesh.

Bangladesh's potential to become a regional manufacturing hub faces significant hurdles. Countries like India and Pakistan are advancing in component manufacturing, with policies favouring relocation and investment from China, added Haque.

Local assemblers add only about 20 percent value as critical components like chips, displays, cameras, RAM, and batteries are imported.

To compete, Bangladesh must address its high tax regime, strengthen local supply chains, and focus on political stability to attract investment and bring stability to the industry, he said.​

 

[Saif]

BTRC initiates telecom licensing reforms for better services

The Bangladesh Telecommunication Regulatory Commission (BTRC) has launched efforts to reform the country’s telecom licensing regime to align with contemporary demands.

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BTRC initiates telecom licensing reforms for better services

The Bangladesh Telecommunication Regulatory Commission (BTRC) has launched efforts to reform the country's telecom licensing regime to align with contemporary demands.

A committee, led by BTRC Commissioner Brig Gen (retd) Iqbal Ahmed, has already held three meetings to restructure the network and licensing roadmap.

BTRC Chairman Maj Gen (retd) Md Emdad Ul Bari shared this information at a press conference at the commission's office in Dhaka yesterday.

"Currently, we observe that many licences are functioning as intermediaries, increasing costs instead of promoting cost efficiency. We intend to review this and strive for a licensing framework that is streamlined, effective, and efficient," he said.

Bari said that the reforms aim to safeguard consumer interests rather than protect business entities. The initiative seeks to foster healthy competition and collaboration among stakeholders, including consumers, businesses, and the government.

Addressing challenges such as transitioning from existing licences, establishing sustainable investment policies, and creating effective regulations, the BTRC plans to submit its reform proposals to the government by March.

The chairman acknowledged the need for consumer-centric policies to ensure sustainability and facilitate, rather than regulate, telecom companies.

He said the committee would streamline complex network structures, reduce pressure on spectrum usage, and enhance fixed broadband services. The commission also aims to adopt green technologies and promote active sharing to support digital service expansion.

He mentioned plans to eliminate unnecessary licences and terminate licences that hinder healthy competition.

The proposed framework will address gaps in clear and sustainable policies, which have deterred investor interest, he said.

Regarding 5G, Bari said that consultations are ongoing, and preparations are underway to auction the 700 MHz band spectrum by June.

However, no definitive timeline for the 5G rollout has been established.

The BTRC will also advise the government on developing policies that position telecom as a key enabler of digital development, focusing on simplified, efficient, and cost-effective networks to meet growing digital demands, he said.

He said VAT and taxes are the government's concern, not the BTRC's. However, VAT and taxes should be reduced as much as possible. Internet services need to be more accessible.

Regarding attracting foreign investment in the telecommunication and internet sector, Bari said that to attract foreign investment, the country must establish investment-friendly regulations. Companies like Amazon, Google, and Meta have emphasised that liability for social media posts should rest with the individual who made the post, not the platform itself.

"We will communicate this perspective to the government," he added.​

 

[Saif]

Grameen Telecom gets digital wallet licence

Samadhan Services Limited, a concern of Grameen Telecom, has at last gained ground in its effort to become a payment service provider (PSP) in Bangladesh.

www.thedailystar.net

Grameen Telecom gets digital wallet licence

Samadhan Services Limited, a concern of Grameen Telecom, has at last gained ground in its effort to become a payment service provider (PSP) in Bangladesh.

Authorities of Samadhan Services had first applied to the country's central bank for a PSP licence on November 16, 2021.

However, the Bangladesh Bank delayed its decision in this regard until August 2024 although the company fulfilled the requirements to receive a No Objection Certificate (NOC).

The central bank finally granted the NOC on September 29 last year, clearing the way for Samadhan Services to secure its PSP licence, according to officials associated with the process.

Officials of the Bangladesh Bank claimed that high-ups, former governor Abdur Rouf Talukder in particular, had purposefully delayed the process.

They said the delay was enforced as an extension of former prime minister Sheikh Hasina's alleged animosity towards Grameen Telecom and its founder, Nobel Laureate Prof Muhammad Yunus, who is now chief adviser to the country's interim government.

Rouf had resigned as Bangladesh Bank governor soon after the Awami League government was ousted by a mass uprising on August 5 last year.

The application from Grameen Telecom was initially reviewed by the central bank's Payment Systems Department, which found that the company had provided satisfactory documentation to move ahead with the process.

As such, the case was eventually forwarded to the-then Bangladesh Bank Governor Rouf in December 2023. But it was not approved at that time, central bank officials said.

The Daily Star tried to reach Rouf over phone to comment on the matter, but his phone number was found switched off.

Md Nazmul Islam, managing director of Grameen Telecom and a director of Samadhan Services, told this newspaper that they are yet to obtain the licence despite securing the NOC.

"The central bank withheld the NOC, but we do not know why," he said.

"Still, we are relieved to have finally received it," Islam said, adding that Samadhan Services is preparing to enter the local market soon as a digital payment service provider.

BANGLDESH BANK'S REQUIREMENTS

The Bangladesh Bank issued a one-year NOC to Samadhan Services, with the company now required to meet several regulatory conditions to secure the final licence.

For example, the company has to raise its paid-up capital to Tk 20 crore and maintain it at this level.

The proposed digital wallet company must also implement anti-money laundering and counter-terrorism financing policies, ensure customer due diligence, and comply with ICT security standards for scheduled banks in the country.

Besides, it must complete software quality and vulnerability assessments, enforce data backup and retention policies, and develop accurate network architecture and topology as stipulated.

WHO'S BEHIND SAMADHAN SERVICES?

The board of directors of Samadhan Services comprises of nine members, primarily nominated by Grameen Telecom.

The company's chairman, M Shahjahan, is a former managing director of Grameen Bank while its managing director, Md Ashraful Hassan, is chairman of Grameen Telecom.

Nurjahan Begum, another director nominated by Grameen Telecom, is the adviser on health and family affairs to the interim government. She is also a former managing director of Grameen Bank.

Meanwhile, Nazneen Sultana, managing director of Grameen Communications, is serving on the board as well.

Other board members include Sohel Ahmed, managing director of Grameen Shakti, and Md Nazmul Islam, managing director of Grameen Telecom.

The remaining directors -- SM Huzzatul Islam Latifee, Mahmud Hossain and Saleem Ahmad Khan -- were also nominated by Grameen Telecom.

A PSP facilitates electronic payment processes and transaction settlements through scheduled banks or financial institutions.

At present, there are eight PSPs in the country licensed by the central bank, including iPay Systems, D Money Bangladesh and Recursion FinTech.

Industry insiders said mobile network operators Robi and Banglalink are keen to enter the digital wallet business while online marketplaces like Daraz and Chaldal have already applied for PSP licenses.​

 

[Saif]

Reimagining Bangladesh’s telecom future

Returning to Bangladesh after more than a decade is both a homecoming and a rediscovery for me. I see a country alive with the energy of resilient youth and shaped by a relentless spirit for progress.

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Reimagining Bangladesh’s telecom future

Returning to Bangladesh after more than a decade is both a homecoming and a rediscovery for me. I see a country alive with the energy of resilient youth and shaped by a relentless spirit for progress.

This Bangladesh holds within it the promise of becoming a beacon for the region -- a nation poised to take its place among the world's great stories of progress.

But as someone who has walked the corridors of the domestic telecom industry since its formative years, the experience has given me a multi-dimensional perspective on its journey.

I am reminded that connectivity is not just a service; it is the invisible thread binding dreams to reality, powering economies, and bridging the distance between potential and achievements.

The telecom sector, a vital driver of the country's socioeconomic transformation, contributed around 1.05 percent of the national GDP in fiscal 2023-24, according to data of the Bangladesh Bureau of Statistics.

Furthermore, the telecom industry is one of the largest contributors of foreign direct investment (FDI). Since inception, approximately Tk 150,000 crore has been invested in the industry till 2023. Also, it has generated about 900,000 jobs, underscoring the crucial interplay between telecommunications growth and overall economic prosperity.

Despite all of its contributions, the sector is shadowed by structural constraints and regulatory uncertainties. Therefore, the question remains: Are we ready to give this sector the space and tools it needs to help Bangladesh soar into a digital future?

Imagine an eagle, born to soar among the clouds, yet its wings are clipped. Its eyes scan the horizon, but flight remains a distant dream. This is the reality of our telecom industry -- immense potential shackled by frameworks and inefficiencies.

A major obstacle is the unpredictable and unfavourable regulations along with micromanagement, which created a climate of uncertainty that hampers innovation and deters investment.

The industry, which thrives on agility and forward-thinking, is also bogged down by overly prescriptive policies, lengthy approval processes, frequent policy changes and a lack of clear dispute resolution mechanisms.

Despite Bangladesh being a promising market, such unpredictability not only delays progress, but poses risks and erodes investor confidence.

Besides, the fragmented licensing regime complicates rather than facilitates growth. Operators are prohibited from managing their own transmission infrastructure or constructing fibre networks. So, they instead rely on multiple intermediaries, often hindering service quality.

Moreover, the absence of uniform KPIs have created an accountability vacuum across the value chain. This fragmented value chain inflates operational costs, reduces efficiency and stifles accountability, ultimately resulting in customer dissatisfaction.

Without addressing these issues, we risk widening the digital divide and holding back the very communities that stand to gain. Therefore, it is worth reflecting on whether we are creating a regulatory environment that empowers the telecom sector to innovate and grow, or are we inadvertently letting these frameworks dictate its trajectory?

To unlock the telecom sector's potential, we need a regulatory framework that fosters innovation, encourages investment and promotes competition. By consolidating fragmented regimes and allowing operators to build and manage their own infrastructure, we can reduce inefficiencies and lower costs, ultimately improving service delivery. A shift from micromanagement to principle-based regulation would further empower the sector. Finally, a stable and predictable regulatory environment will add speed and efficiency in the journey of building a prosperous, inclusive digital society.

The choice before us is profound: Do we embrace a future where innovation thrives, investments flow, and opportunities expand, or do we accept a status quo that limits what it could be?

The author is chief corporate affairs officer of Grameenphone​

 

[Saif]

Bangladesh signs MoU with ADB to develop country’s first green data centre

The Posts and Telecommunications Division under the Ministry of Posts, Telecommunications and Information Technology, BTCL, the Public-Private Partnership Authority (PPPA), and the Asian Development Bank (ADB) has signed a memorandum of understanding (MoU) to develop the country’s first green...

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Bangladesh signs MoU with ADB to develop country’s first green data centre

Representational image generated by using AI/Canva.

The Posts and Telecommunications Division under the Ministry of Posts, Telecommunications and Information Technology, BTCL, the Public-Private Partnership Authority (PPPA), and the Asian Development Bank (ADB) has signed a memorandum of understanding (MoU) to develop the country's first green data centre under a public-private partnership (PPP) model through international competitive bidding on 27 January.

The green data centre, which will be established on BTCL-owned land near Chattogram, will adhere to international standards to ensure high availability and operational scalability. It will be powered by renewable energy and offer commercial colocation services for both public and private sector enterprises while also meeting BTCL's internal data storage requirements, according to a recent report by Bangladesh Sangbad Sangsha (BSS).

With similar functionalities to a data centre, a green data centre conserves data while minimizing its environmental impact like reducing carbon emissions and energy consumption.

A transaction advisory services (TAS) agreement will soon be signed to implement the project under the PPP model. ADB's advisory support will focus on feasibility assessments, project structuring, tendering, and stakeholder capacity-building while fostering an investment-friendly environment for private sector participation in Bangladesh's digital economy, according to BSS.​

 

[Saif]

Feature phones dominate local handset production

Even in current smartphone age, feature phones continue to dominate local handset manufacturing as smartphone penetration struggles to gain momentum due mainly to affordability, availability and an illegal inflow of modern handsets in the country.

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Feature phones dominate local handset production

A man checks his phone while idling on a pushcart being driven by his colleagues through a street in Dhaka. Photo: AFP/file

Even in current smartphone age, feature phones continue to dominate local handset manufacturing as smartphone penetration struggles to gain momentum due mainly to affordability, availability and an illegal inflow of modern handsets in the country.

Feature phones last year accounted for 69 percent of the total handsets produced by local manufacturers, according to the Bangladesh Telecommunication Regulatory Commission (BTRC).

In 2024, local phone-makers produced 2.72 crore handsets, with 1.88 crore being feature phones.

An illegal inflow of smartphones is the primary reason for Bangladesh's low smartphone production, according to industry insiders. They said nearly all phones entering the country from abroad are smartphones.

A large chunk of those items goes to the unauthorised phone market, according to local phone-makers.

Rizwanul Haque, vice president of the Mobile Phone Industry Owners' Association of Bangladesh, said, "Around 35 percent of local handset demand is met by the grey market, severely impacting local manufacturers."

Roughly around seven to eight years ago, smartphone production surged in the local market, but this growth began to taper off over time.

In 2017, following the government's decision to offer substantial tax benefits to encourage local manufacturing, Walton, a leading local manufacturer, produced just 40,000 smartphones, all of which were 3G devices.

By the following year, feature phones -- specifically 2G phones -- accounted for 53.4 percent of the total 22.3 lakh handsets produced.

This shift occurred as 4G technology was introduced in the country, with the majority of smartphones falling into the 4G category.

In 2019, local handset production surged 7.27-fold, reaching 1.6 crore units, with 62.5 percent of them being feature phones.

The trend continued in 2020, when local manufacturers produced 2.4 crore handsets, 66.5 percent of which were feature phones.

In 2021, the number of locally produced handsets grew to 2.95 crore, with feature phones comprising 68 percent of the total. Similarly, in 2022, feature phones accounted for about 68 percent of the 3.16 crore handsets produced locally.

In 2023, the trend persisted, with 70 percent of the 2.33 crore handsets manufactured being feature phones.

According to the World Bank's Digital Progress and Trends Report 2023, the rate of smartphone usage among mobile phone users in Bangladesh is around 51.77 percent.

This places Bangladesh as the country with the lowest smartphone penetration rate in South Asia, trailing even Afghanistan, which has surpassed Bangladesh with a smartphone usage rate of 55.79 percent, said the report.​

 

[Saif]

Reforms stressed to make telecom services more affordable

Speakers at a discussion on Sunday called for urgent reforms in Bangladesh’s telecommunications’ sector to make mobile and internet services more affordable.

www.newagebd.net

Reforms stressed to make telecom services more affordable
Staff Correspondent 16 February, 2025, 22:50

Speakers at a discussion on Sunday called for urgent reforms in Bangladesh’s telecommunications’ sector to make mobile and internet services more affordable.

At the discussion titled ‘Necessity of Reformation in Telecommunication and Internet Sector’ organised by the Bangladesh Mobile Phone Consumers Association at the National Press Club in the capital Dhaka on Sunday, they emphasised the need for fair competition and policy changes.

They stressed the need to recognise the internet as a basic necessity.

Speakers also urged the government to lower VAT and taxes on mobile calls and internet services, mentioning that currently 60 to 70 per cent of the total cost was due to government-imposed charges.

They also raised concerns over multi-layered internet distribution system. They criticised the existing multi-layered internet distribution system, saying it had led to higher consumer costs.

Ishraque Hossain, a member of international affairs committee of the Bangladesh Nationalist Party, accused the ousted Awami League government of monopolising the sector.

He said, ‘Corruption has been carried out silently in the telecom sector like in every other sector. A white paper on the telecom sector should be published to reveal the persons responsible for this.’

He welcomed a proposal to introduce Starlink, a US-based satellite internet provider, in the country, saying that it could improve internet access, especially in rural areas, and create more digital job opportunities.

Khaled Abu Nasser, former competition commission director, highlighted the importance of protecting local investors, saying, ‘The telecom sector is linked to various industries. We must ensure a fair market and prevent monopolies.’

Speakers also urged the regulatory authorities to lower VAT and taxes on the internet services, saying that lower costs would enable operators to offer more affordable services.

BMPCA president Mohiuddin Ahmed, Grameenphone senior director Hossain Sadat, BDJobs chief executive officer Fahim Mashrur and International Internet Gateway Association of Bangladesh president Aminul Hakim also spoke at the event.​

 

[Saif]

Telecom regulator itself being regulated

The Bangladesh Telecommunication Regulatory Commission (BTRC) is struggling to implement various initiatives due to a lack of coordination as well as legal constraints that limit its independence, its chairman Md Emdad Ul Bari said.

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Telecom regulator itself being regulated
BTRC chairman says

The Bangladesh Telecommunication Regulatory Commission (BTRC) is struggling to implement various initiatives due to a lack of coordination as well as legal constraints that limit its independence, its chairman Md Emdad Ul Bari said.

Speaking at a two-day conference titled "Recommendations by the Task Force on Restrategising the Economy" at BRAC Centre Inn in Dhaka, he highlighted the regulatory challenges faced by the telecom regulator.

Although the commission was initially formed as an independent entity, a legal amendment made it necessary for the regulator to seek government approval before making decisions.

This effectively means the regulatory body itself is regulated by the government, making decision-making and implementation difficult.

The conference, organised by the Centre for Policy Dialogue (CPD), focused on inclusive economic development through digital transformation and the growth of micro, small and medium enterprises.

Speakers also pointed out that internet costs in Bangladesh remain high, primarily due to heavy taxation. They argued that unless the government reduces the tax rate, internet prices will not decrease, limiting internet access among the general population.

BTRC Chairman Bari explained that the fact that there are multiple intermediaries in the internet distribution chain significantly drive up costs.

He said internet services reach consumers after passing through several stages, each deducting a substantial amount. This is one of the main reasons why internet prices remain high.

However, he said efforts are underway to simplify the network system, with expected progress by March-April.

He also mentioned that BTRC is currently working on regulating Starlink's potential entry into the market.
Bdjobs CEO Fahim Mashroor, who presented a keynote paper, highlighted that internet usage is significantly lower in rural areas compared to urban regions.

He attributed this to excessive taxes, a complex supply chain, and high data transmission costs.

Monzur Hossain, research director at the Bangladesh Institute of Development Studies, suggested establishing a dedicated SME bank to address financing challenges.

He said the SME policy mentions a separate SME bank, but it has not been implemented. Government banks have SME divisions, but they are not fully SME-friendly. Given the sector's expansion, a specialised SME bank is necessary.

Hossain proposed that Palli Sanchay Bank could be transformed into an SME bank, given its experience in working with small businesses.

However, Bangladesh Bank's SME & Special Programs Department Director Nawshad Mustafa opposed the idea, suggesting instead that the Karmasangsthan Bank be converted into an SME bank.

Mostafa further mentioned that Bangladesh Bank is working to make SME financing easier.

He said SME entrepreneurs can now avail loans of up to Tk 5 lakh taka without collateral, based on their business bank accounts. A related circular will be issued soon, he said.

He also revealed that startups securing foreign investment could receive matching funds from Bangladesh Bank.

SME Foundation General Manager Nazim Hasan Sattar pointed out a major inefficiency in SME development efforts.

Experts at the conference urged the government to revise taxation policies to make digital services more accessible.

Mahtab Uddin Ahmed, president at Institute of Cost and Management Accountants of Bangladesh, criticised the high tax on mobile data and call rates, which currently exceed 40 percent.

"On one hand, we promote 'Digital Bangladesh', while on the other, we impose heavy taxes that discourage digital adoption," he said.​

 

[Saif]

Stakeholders’ support will drive telecom sector reforms: BTRC

The Bangladesh Telecommunication Regulatory Commission will move forward with telecommunication sector reforms based on the support of the majority of stakeholders, ensuring affordability and service quality, said BTRC chairman Md Emdad-ul-Bari...

www.newagebd.net

Stakeholders’ support will drive telecom sector reforms: BTRC
Staff Correspondent 27 February, 2025, 22:15

The Bangladesh Telecommunication Regulatory Commission will move forward with telecommunication sector reforms based on the support of the majority of stakeholders, ensuring affordability and service quality, said BTRC chairman Md Emdad-ul-Bari.

He made the remarks at the second consultative workshop on telecom sector reforms, organised by BTRC at its office in Dhaka, according to a press release issued by the regulatory authority.

Emphasising the need to modernise regulations in line with technological advancements, Emdad-ul-Bari said, ‘Technology is constantly changing, so we must adapt to new developments.’

He added that digital services would be prioritised to enhance network connectivity and consumer benefits.

BTRC’s engineering and operations division commissioner Iqbal Ahmed stated that the reforms would focus on customer interests while ensuring smooth transition of the existing businesses.

According to the press release, the proposed framework divides telecom licenses into three categories, including Access Service Providers for customer-level services, National Connectivity Service Providers for nationwide services, and International Connectivity Service Providers managing global connectivity.

During discussions, stakeholders highlighted key concerns such as infrastructure sharing, regulatory flexibility for new technologies, and last-mile connectivity improvements.

They also called for a competitive market, tax policy revisions, transparent tariff regulations, and open-access transmission.

For international services, discussions covered investment opportunities and aligning telecom policies with information and communication technology regulations.

The workshop was attended by senior officials from BTRC, Bangladesh Bank, the National Telecommunication Monitoring Centre, telecom operators, internet service providers, industry associations, and experts from BUET, MIST, North South University, and BRAC University.​

 

[Saif]

Telecom policy to undergo fundamental reforms

The government will fundamentally transform the country’s telecom policy to unlock the digital economy, improve service quality and prevent internet shutdowns during critical periods, said Faiz Ahmad Taiyeb, the newly appointed special assistant to the chief adviser.

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Telecom policy to undergo fundamental reforms

The government will fundamentally transform the country's telecom policy to unlock the digital economy, improve service quality and prevent internet shutdowns during critical periods, said Faiz Ahmad Taiyeb, the newly appointed special assistant to the chief adviser.

Without a fundamental structural overhaul, there will be no significant improvement in the quality of telecom services, he added.

He was speaking at a seminar titled "Steps to Ensure High-Speed, Quality, and Affordable Internet Access at the Marginal Level", organised by the Bangladesh Mobile Phone Consumers' Association at the National Press Club yesterday.

"We will make every possible effort to drive policy reform on behalf of the government despite the numerous challenges ahead. These reforms will be meaningful and policies will undergo a thorough transformation," Taiyeb said.

Taiyeb urged businesses to abandon monopolistic or duopolistic approaches, saying, "The government is determined to dismantle policies that have stifled Bangladesh's data market by allowing certain companies to hold onto the existing fiber infrastructure as if it were a treasure trove.

"The more fibre you lay, the more business you create," he emphasised.

The special assistant also criticised the current policy, saying it was designed around voice calls and revenue collection while restricting the data economy.

"This outdated, legacy-driven approach has long been obsolete," he added.

Modern telecom industries function as digital economy-driven service sectors, but Bangladesh has failed to position its communication industry for machine-to-machine communication, digital services, software innovations, and Internet of Things businesses, he said.

"This flawed perspective has led to the misconception that reducing prices would inevitably shrink revenues for both companies and the government. The previous administration compounded the issue by layering misguided policies, creating a mounting crisis.

"In the name of digitalisation, the past regime introduced inconsistent, subpar, and globally misaligned policies," Taiyeb said.

The key question now is how Bangladesh can transition from a readymade garments-oriented export economy to a technology-driven modern digital economy, ensuring export diversification and sustainable growth, he added.

Mustafa Mahmud Hussain, a telecom policy expert, delivered the keynote speech.

He said Bangladesh's digital progress depends on fair competition in the broadband sector.

However, monopolistic control over fiber infrastructure and outdated telecom policies have hindered the growth of internet service providers (ISP), limiting access to affordable high-speed internet. Addressing these challenges requires significant reforms, he said.

"The monopoly over the National Telecommunication Transmission Network (NTTN) must end," he added.

A tiered ISP licensing system would support small providers, while strict anti-monopoly regulations would help maintain a competitive ecosystem, he said.

Bangladesh must also focus on future goals, such as achieving 100 Mbps broadband for all households by 2030.

Encouraging next-generation technologies like AI-driven networks and IoT-based connectivity, along with partnerships with global tech giants, will drive digital transformation, he mentioned.

Expanding affordable internet access to rural areas through infrastructure development and government support is crucial, he added.​

 

[Saif]

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.

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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.​

 

[Saif]

Govt proposes conditional concessions over 700MHz spectrum auction

The government has formally responded to concerns raised by major foreign telecom investors regarding the upcoming 700MHz spectrum auction, proposing conditional pricing concessions to ease industry apprehensions.

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Govt proposes conditional concessions over 700MHz spectrum auction
Move designed to alleviate investor concerns

The government has formally responded to concerns raised by major foreign telecom investors regarding the upcoming 700MHz spectrum auction, proposing conditional pricing concessions to ease industry apprehensions.

Faiz Ahmad Taiyeb, special assistant to the chief adviser with executive authority over the Ministry of Posts, Telecommunications and ICT, suggested a potential 5-10 percent reduction in spectrum prices.

However, this discount would be contingent upon mobile network operators committing to infrastructure upgrades, lowering consumer prices and enhancing service quality.

The move comes after foreign investors expressed reservations about the auction, citing high costs and uncertain returns.

In a letter dated March 25, Taiyeb acknowledged investor apprehensions about spectrum costs, limited bandwidth availability and device compatibility, but underscored the state's focus on aligning pricing with global standards and addressing systemic sectoral inefficiencies.

Earlier on March 17, major international telecom investors expressed concerns about the proposed parameters for the upcoming auction, citing technical, commercial and economic challenges.

In a joint letter addressed to Taiyeb, the parent companies of Bangladesh's leading mobile network operators urged the government to reconsider the auction's timing and pricing structure.

Signed by senior executives of Axiata, Telenor, and Veon, the letter highlighted three key issues with the current plan: the limited amount of spectrum being released, the disproportionately high pricing and limited device compatibility with the 700MHz band.

Citing a 40 percent devaluation of the Bangladeshi Taka against the US dollar since 2022, Taiyeb defended its dollar-denominated spectrum valuation as a safeguard against currency risks for foreign-dominated telecom operators, which repatriate profits in USD.

Responding to concerns over partial release of spectrum in the 700 MHz band -- 2x25MHz out of a total 2x45MHz -- Taiyeb said efforts were underway to resolve technical and commercial barriers for releasing the remainder, emphasising the band's role in expanding 4G/5G coverage and IoT services.

While noting 50 percent of existing 4G devices already support 700MHz, the government revealed plans to mandate local manufacturers and importers to halt non-compliant device sales -- a policy expected to boost penetration "significantly" within months.

The letter sharply criticised mobile network operators for underutilising higher-frequency spectrum bands (7–18 percent usage) intended for urban capacity, blaming inadequate deployment of critical infrastructure like Baseband Units (BBU) and Radio Resource Units (RRU) for fragmented networks, slow speeds and frequent call drops.

It accused operators of maintaining "artificially" high internet prices and restrictive data validity periods, perpetuating a "vicious cycle" that limits digital adoption despite low utilisation rates.

"Mobile network operators have not shown proper willingness to adjust consumer pricing accordingly. Moreover, the very short data validity period of national internet packages is being criticised in society," Taiyeb said.

"This seems to be a coordinated vicious cycle that mobile network operators have artificially engineered, holding back the growth of internet services," he added.

The telecom regulator aims to auction spectrum in the 700 MHz band this year to support the expansion of 4G and rollout 5G networks in the country.

It set the price at Tk 263 crore per MHz, but mobile operators are unhappy with that decision so further negotiations are anticipated in this regard.

The latest spectrum auction took place in March 2022, when the Bangladesh Telecommunication Regulatory Commission fetched around $1.23 billion as operators acquired a total of 190MHz spectrum.​

 

[Saif]

Internet user base shows signs of recovery in Feb

After months of decline, Bangladesh's internet user base showed signs of stabilisation in February 2025, according to data from the Bangladesh Telecommunication Regulatory Commission (BTRC). The number of mobile internet users saw a slight increase from 116.02 million in January to 116.03 mill

thefinancialexpress.com.bd

Internet user base shows signs of recovery in Feb
FE REPORT
Published :
Mar 30, 2025 00:29
Updated :
Mar 30, 2025 00:29

After months of decline, Bangladesh's internet user base showed signs of stabilisation in February 2025, according to data from the Bangladesh Telecommunication Regulatory Commission (BTRC).

The number of mobile internet users saw a slight increase from 116.02 million in January to 116.03 million in February, while broadband users remained unchanged at 14.04 million.

In June 2024, the country had approximately 129.17 million mobile internet users. However, by January 2025, this figure had fallen to 116.02 million, reflecting a loss of over 13 million users.

Similarly, the total number of internet subscribers, including both mobile and broadband users, declined from 142.17 million in June 2024 to 130.06 million in January 2025.

Industry experts attributed this decline to factors such as rising living costs, increased taxation, and political instability.

A telecom expert noted that growing expenses have deterred consumers from acquiring new connections, making it difficult to keep marginalised populations connected.

Additionally, higher usage costs have discouraged many from maintaining alternative connections, he said.

Despite these challenges, the slight uptick in mobile internet users in February 2025 offers a glimmer of hope for the sector, suggesting a possible easing of the factors that contributed to the decline registered earlier.

However, the broadband segment has remained flat, indicating that further efforts may be needed to stimulate growth in this area.

Meanwhile, the overall number of mobile subscribers continued to decline during the same period.​

 

[Saif]

Draft telecom policy keeps door open for monopoly

The Bangladesh Telecommunication Regulatory Commission’s (BTRC) draft policy to reform its complex licensing regime arrives with bold promises — streamlining processes, encouraging competition, and attracting foreign investment.

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Draft telecom policy keeps door open for monopoly

The Bangladesh Telecommunication Regulatory Commission's (BTRC) draft policy to reform its complex licensing regime arrives with bold promises — streamlining processes, encouraging competition, and attracting foreign investment.

Yet, beneath the surface, certain clauses lack clarity and may safeguard existing market inequalities, empower dominant players, sideline local entrepreneurs, and, in some cases, discourage foreign ownership, said experts.

At the core of the proposed reforms is the consolidation of the licensing structure in the telecommunications sector — where there are over 20 types of licences — into three broad categories: National Infrastructure & Connectivity Service Provider (NICSP), International Connectivity Service Provider (ICSP), and Access Network Service Provider (ANSP).

However, despite its aim to "promote local entrepreneurship by fostering fair competition," the draft guidelines place no limitations on foreign partners acquiring ownership stakes in any other BTRC licensees, which may end up opening the door to cross-ownership and foreign control across all segments — without offering similar leverage to local entities.

Experts warn that this imbalance could lead to anti-competitive consolidation, policy loopholes, and further erosion of domestic participation in a sector vital to national digital sovereignty.

For instance, Axiata Group, which owns Robi Axiata; Telenor, which holds a majority stake in Grameenphone; and Veon, owner of Banglalink, will be eligible to simultaneously hold a stake in licensees from all three categories.

BTRC Chairman Md Emdad ul Bari said the policy had been designed this way to attract traceable foreign investment.

As an example, he cited Axiata Group's investment in edotco Bangladesh despite its existing stake in Robi Axiata.

However, experts have warned that this move could lead to discrimination, discourage local entrepreneurship, and potentially result in monopolistic practices.

Notably, this provision contradicts a clause in the draft itself, which prohibits ANSPs from holding ICSP licences.

Abu Nazam M Tanveer Hossain, a telecom policy expert, said, "In the absence of strict cross-ownership restrictions, dominant players may exploit their market power in one segment to suppress competition in others. A clear separation between service layers is essential to prevent anti-competitive practices. Allowing foreign ownership across multiple layers of licensing undermines this principle."

He also argued that the policy's allowance of up to 49 percent foreign ownership in the ICSP category, 70 percent in NICSP, and 100 percent in ANSP could ultimately stifle foreign investment.

Such inconsistency risks enabling regulatory arbitrage and discouraging financially and technically capable international firms from entering the market.

"To create a level playing field and attract long-term, sustainable foreign investment, the policy should consider removing ownership caps entirely and ensure that equity stakes genuinely reflect foreign capital — not local loans disguised as equity infusions," Hossain said.

Interestingly, the 70 percent foreign investment cap under the NICSP category aligns with the current foreign ownership structure of Summit Communications, the country's largest national transmission service provider, which holds most of the key licences in the telecommunications sector.

Last year, Summit Communications sold 70 percent of its shares to UAE-based Global Energies and Mauritius-based Sequoia Infra Tech for Tk 170.5 crore.

Axiata Group's stake in edotco also matches the ownership ratio proposed for this category of licence.

BTRC officials, however, claimed this was a mere coincidence.

One commendable proposal in the draft policy is the phasing out of outdated intermediaries such as operators of Internet Gateways (IIG), Interconnection Exchanges (ICX), National Internet Exchanges (NIX), and International Gateways (IGW).

The proposed ANSP licence will consolidate mobile and fixed-line services into two sub-categories: Cellular Mobile Service for operators using technologies like GSM, 5G, and future evolutions; and Fixed Telecom Service for wired or wireless broadband providers.

These licensees will manage last-mile connectivity, offer bundled voice, data, and digital services, and share passive infrastructure such as towers and fibre, though spectrum sharing will require BTRC approval.

Existing mobile operators, ISPs, and Public Switched Telephone Network providers will migrate to these categories, with fixed-line operators barred from holding mobile licences to prevent market dominance.

However, the policy's suggestion to phase out these intermediaries only upon licence expiry could create delays and regulatory loopholes, allowing dominant players to retain multiple licences across categories.

For instance, Summit Communications and Fiber@Home both hold NTTN licences, valid until 2039, alongside International Terrestrial Cable (ITC) licences. This overlap creates confusion as to whether they will continue operating across both categories.

Another contentious issue arises from a provision allowing mobile operators to combine radio and wired access technologies to offer enterprise solutions.

This may mean that mobile operators will be allowed to deploy fibre from their towers directly to routers placed within business premises — capturing a significant share of the most lucrative segment of the broadband market, traditionally served by fixed-line providers.

Md Emdadul Hoque, president of the Internet Service Providers Association of Bangladesh, warned that if the new policy permits mobile network operators (MNOs) to offer last-mile connectivity using radio or cable under the guise of "enterprise solutions," it could directly conflict with the existing fixed broadband licensing framework.

"Therefore, we propose the following clarification," he added. "If BTRC authorises MNOs to deploy last-mile infrastructure, this should be explicitly stated in a separate clause, making it clear that such deployment is limited strictly to MNOs' internal infrastructure needs, such as base transceiver station interconnections."

However, Shahed Alam, chief corporate and regulatory officer at Robi Axiata, dismissed those objections as "baseless and misconceived."

He argued that MNOs already provide connectivity solutions under the scope of their existing licences. The draft policy, he noted, merely clarifies an existing practice.

BTRC Chairman Bari reaffirmed the regulator's foundational principle: wired services will be provided by broadband operators, while wireless services will fall under mobile operators.

He said the local entrepreneurship-driven broadband service sector would be kept highly protected, with no foreign investment allowed.

"There will be a clarification on this matter in the final policy," he said.

However, he acknowledged that as technology evolves, the boundaries between wired and wireless segments will inevitably blur.

He added that BTRC is currently reviewing the feedback received on the draft policy and will incorporate necessary revisions before submitting it to the ministry for final approval.​

 

[Saif]

Mobile operators welcome govt's proposed reforms to telecom sector

The Association of Mobile Telecom Operators of Bangladesh (AMTOB) has voiced support for the government's proposed Telecommunications Network and Licensing Reform Policy 2025, terming it a "bold and necessary step" towards overhauling the country's outdated telecom regulatory framework. In a state

thefinancialexpress.com.bd

Mobile operators welcome govt's proposed reforms to telecom sector

UNB
Published :
Jun 03, 2025 21:35
Updated :
Jun 03, 2025 21:35

The Association of Mobile Telecom Operators of Bangladesh (AMTOB) has voiced support for the government's proposed Telecommunications Network and Licensing Reform Policy 2025, terming it a "bold and necessary step" towards overhauling the country's outdated telecom regulatory framework.

In a statement issued on Tuesday, the industry body acknowledged recent media discussions surrounding the draft policy and called for a clearer, fact-based understanding of the reforms.

"While we appreciate the concerns raised by stakeholders, we believe it is critical to present a clearer, fact-based perspective regarding the proposed reform," said AMTOB.

Refuting claims that the draft favours foreign companies or mobile operators, AMTOB said that the proposed policy does not offer any undue advantage to either group.

In fact, it continues to curtail the operational scope of mobile operators, who are at the frontline of delivering telecom and digital services to consumers across the country, it said.

Citing legacy issues stemming from the 2007 International Long Distance Telecommunication Services (ILDTS) Policy, AMTOB criticised the sector's fragmentation, which introduced multiple intermediary entities such as IGWs, IIGs, ICXs, and NTTNs. These entities, according to AMTOB, add minimal value to service delivery while inflating costs and creating inefficiencies.

Despite these limitations, the association welcomed the government's intent, describing the new policy structure, which proposes dividing the licensing regime into International Connectivity Services, National Infrastructure Connectivity Services, and Access Network Services, as a marked improvement over the current model.

The association argued that, in most countries, mobile operators are granted the autonomy to manage end-to-end infrastructure, resulting in more affordable and higher-quality services for consumers. In contrast, Bangladesh's heavily segmented licensing regime continues to stifle sectoral growth and compromise user experience.

"Reform in the telecom sector is not just an industry imperative - it is a national interest," AMTOB stressed, adding that a modern, competitive telecom ecosystem is vital to achieving a digitally advanced economy and supporting national socio-economic goals.

"While the current reform proposal is not the final solution, it sets the right tone," the statement said.​