[🇧🇩] Telecommunication Industry in Bangladesh

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NovoTel Limited: Powering Bangladesh’s digital future with global telecom leadership

In the digital age, NovoTel Limited has positioned itself as a key player in Bangladesh's telecom industry. As the first privately owned International Gateway operator in the country, NovoTel has demonstrated impressive vision and engineering expertise in developing an integrated, resilient, and fu

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NovoTel Limited: Powering Bangladesh’s digital future with global telecom leadership

FE ONLINE REPORT
Published :
Jun 22, 2025 20:37
Updated :
Jun 22, 2025 20:37

In the digital age, NovoTel Limited has positioned itself as a key player in Bangladesh's telecom industry. As the first privately owned International Gateway operator in the country, NovoTel has demonstrated impressive vision and engineering expertise in developing an integrated, resilient, and future-ready telecom network. Established in 2008 with a licence from the Bangladesh Telecommunication Regulatory Commission, the company has consistently set new standards for quality, scalability, and global interoperability. NovoTel's contributions extend beyond basic connectivity, with the company actively involved in fostering innovation and driving digital inclusion across Bangladesh.

NovoTel's core infrastructure is built upon a robust foundation of cutting-edge technologies and strategic partnerships. Its network architecture incorporates advanced routing and switching equipment, along with redundant fibre optic links to ensure high availability and low latency. The company's global partnerships with leading technology vendors and service providers further enhance its capabilities, allowing it to offer a comprehensive suite of services, including voice, data, and value-added solutions. These services are vital to supporting the growing demand for digital connectivity in Bangladesh, which is essential for economic development and social progress.

NovoTel's commitment to quality is evident in its rigorous testing and monitoring processes. The company operates a state-of-the-art network operations centre that provides 24/7 monitoring and support, ensuring optimal performance and rapid response to any potential issues. NovoTel is dedicated to complying with all regulatory requirements and industry standards, demonstrating its commitment to responsible and ethical business practices. NovoTel’s engineering prowess is reflected in its ability to design and deploy complex network solutions tailored to the specific needs of its customers. NovoTel's proactive approach to network management and security helps to maintain its strong market position and foster trust among its stakeholders.

At its core, NovoTel specialises in IP Networking, Transmission Infrastructure, and Core Voice Switching, effectively handling over 400 million minutes of international voice traffic every month. Its strategic Points of Presence in Equinix IBX, Singapore, and Epsilon Global Hubs, London, serve as crucial interconnection nodes, facilitating seamless data and voice transmission with leading global carriers. Connectivity is established via STM-1 TDM circuits and SEA-ME-WE-4 submarine and terrestrial cables, ensuring low latency, robust redundancy, and geographic diversity for network resilience. This infrastructure is supported by robust network management and security protocols, which are essential for maintaining the integrity and reliability of its services.

NovoTel is a proud telecommunications venture of the Tusuka Group, a renowned Bangladeshi industrial conglomerate known for high-quality denim and sustainable apparel. Led by the visionary Arshad Jamal Dipu, who serves as both NovoTel's Chairman and Tusuka Group's Founder, the company has expanded beyond traditional voice services into enterprise connectivity, data transmission, and aviation. This diversification strategy enables NovoTel to address a broader range of market needs and capitalise on emerging opportunities in the digital economy.

The strategic foresight of NovoTel's leadership has materialised through the development of synergistic subsidiaries. NovoCom Limited, licensed as an International Terrestrial Cable and International Internet Gateway operator, provides IPLC, Global MPLS, IP Transit, and data co-location services. With points of presence in Singapore and London, NovoCom plays a vital role in Bangladesh's international internet routing and enterprise-grade data services. InterCloud Limited operates as a nationwide ISP and IP Telephony Service Provider, delivering business internet, cloud collaboration tools, SIP trunking, and a proprietary app called "brilliant CONNECT" that enables secure and scalable enterprise communications. Bangla ICX, one of the largest Interconnection Exchange operators, handles domestic and international call routing through high-capacity STM-1 circuits. Bangla ICX provides real-time traffic monitoring, codec conversion, and ensures interoperability among major telecom operators in Bangladesh. NOVOAIR, the aviation wing of the group, exemplifies operational excellence in domestic and regional passenger air travel, offering superior safety, punctuality, and service, while extending NovoTel's brand into aviation and travel-tech solutions. NovoTel's multi-faceted approach ensures a comprehensive suite of services that address different layers of connectivity and communication needs in Bangladesh.

NovoTel’s integrated ecosystem promotes digital access, international trade, and employment. With secure, scalable, and standards-aligned infrastructure, the company plays a vital role in Bangladesh’s digital transformation and 5G readiness. As Bangladesh advances technologically, NovoTel Limited is a national leader driving the country's digital economy. NovoTel's leadership team, with expertise in engineering, innovation, and business strategy, is not just participating in the global telecom industry, but shaping its future.​

 

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BNP warns draft telecom policy may favour big operators

The Bangladesh Nationalist Party on Thursday expressed concern over the draft Telecommunication Network and Licensing Regime Reform Policy 2025, saying that the proposed policy could disproportionately benefit the large telecommunication companies while hurting the small and medium enterprises...

www.newagebd.net

BNP warns draft telecom policy may favour big operators
Staff Correspondent 03 July, 2025, 21:08

The Bangladesh Nationalist Party on Thursday expressed concern over the draft Telecommunication Network and Licensing Regime Reform Policy 2025, saying that the proposed policy could disproportionately benefit the large telecommunication companies while hurting the small and medium enterprises.Bangladesh-themed souvenirs

At an emergency press conference held at the BNP chairperson’s office at Gulshan in the capital Dhaka, BNP secretary general Mirza Fakhrul Islam Alamgir criticised the draft policy, saying it lacked inclusivity and risked increasing market monopolisation.

He said that the draft policy clearly maintained structural advantages for major telecommunication operators, which would strengthen dominance rather than foster competition.

He warned that this could pose serious challenges to the SMEs and independent internet service providers, particularly in terms of regulatory uncertainty and financial sustainability.

‘The initiative, while commendable in intention, is being pushed forward without proper consultation. This is a matter of national importance and should not be decided in hast,’ Fakhrul said.

He said that a thorough economic and social impact assessment had to be conducted, and that all relevant stakeholders, including the SMEs, industry experts and consumer rights groups, should be consulted before the policy was finalised.

Fakhrul pointed to several issues in the draft, including the removal of restrictions on cross-ownership across telecommunication services, which he claimed would allow large mobile operators to establish monopolies in multiple sectors.

He warned that the deregulation framework, if implemented without clear safeguards, could force smaller firms into financial distress.

‘There is ambiguity surrounding foreign ownership limits and enterprise service boundaries, which could both deter investment and destabilise the sector,’ Fakhrul said.

He also raised concern over spectrum dependency under the proposed application and network service provider licensing framework, saying it would further advantage larger players with greater resources.

The BNP called on the government to approach the telecommunication reform with caution, transparency and participatory engagement, particularly at that time with a national election approaching.

BNP standing committee member Abdul Moyeen Khan said that the goal of any modern technology policy should be to ensure benefits reach the public — not just major corporations.

‘We support technological advancement and digital expansion, but if the benefits of AI, broadband and digital services do not reach rural populations, the country’s digital transformation will be incomplete and unjust,’ he said.​

 

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New telecom policy aims to end syndicates, boost 5G, cheaper internet

Bangladesh’s telecom system, long criticised for inefficiency and corruption, is undergoing a major overhaul under the proposed ‘Telecom Network and Licensing Reform Policy 2025’.

www.thedailystar.net

New telecom policy aims to end syndicates, boost 5G, cheaper internet
Faiz Ahmad Taiyeb
​

Faiz Ahmad Taiyeb, Special Assistant to the Chief Adviser at the Ministry of Posts, Telecommunication and Information Technology.

Bangladesh's telecom system, long criticised for inefficiency and corruption, is undergoing a major overhaul under the proposed 'Telecom Network and Licensing Reform Policy 2025'.

At a speech delivered on July 7, Faiz Ahmad Taiyeb, Special Assistant to the Chief Adviser at the Ministry of Posts, Telecommunication and Information Technology, laid out a roadmap for dismantling syndicate control, reducing consumer costs, and modernising digital infrastructure in line with international standards.

"Our internet has been described as the worst in the world," said Taiyeb, referring to a May 2 conference hosted by the Bangladesh Telecommunication Regulatory Commission (BTRC).

"Since then, some vested interests and media circles connected to the communication mafia have launched attacks on us. But we remain committed to reform," he added.

To tackle this, the new licensing framework seeks to align with international standards set by bodies such as the International Telecommunication Union (ITU) and GSMA. The government intends to phase out outdated licenses and introduce a "world-class structure" designed to last 10 to 12 years, as per Faiz Taiyeb.

"We aim to discard licensing tiers like ICX and NIX which no longer exist anywhere else in the world," Faiz Taiyeb added.

Cracking down on rent-seeking licences
Taiyeb criticised the proliferation of toll-based operators issued under the 2010 International Long Distance Telecommunication Services (ILDTS) policy, calling them "toll collectors" who add little to no value to the telecom ecosystem.

"By 2024, BTRC had issued 3,573 licences across 29 categories, many of them to Awami League-aligned individuals. Entities like ICX (Interconnection exchange), IGW (International Gateway), IOF (International Origination Function), NIX (National Internet Exchange) and IIG (International Internet Gateway) have siphoned hundreds of crores with minimal infrastructure investment," Faiz Taiyeb said, citing figures like BDT 631 crore in Market Development Fees (MDS) 95% of which routed through Beximco Computers and a total estimated embezzlement of BDT 8,000 crore through IOF over nine years.

"Mobile operators are facing losses of BDT 19 crore per month, ICX BDT 16 crore, and BTRC BDT 47 crore per month due to the IGW/IOF syndicate," Faiz Taiyeb added.

Restructuring the licence landscape
The new policy would put internet service providers (ISPs) under a lighter regulatory system. "We initially wanted to fully deregulate ISPs," said Taiyeb, "but they themselves requested licensing in order to secure loans. That is why they do not want to be fully deregulated."

There will also be limits on how much foreign companies can own. "Foreign investors can hold up to 49% in the international layer and up to 55–60% in the national layer. Even for the two 100% foreign-owned operators, we're imposing an 80% ceiling," he said.

The government will eliminate licence renewals for ICX and IGW after 2027. "Because of the ICX phase 5 paisa per call minute charge is added. We will request MNOs (Mobile Network Operators) to reflect this cost reduction in their rates," he said.

The reform intends to reduce the number of network layers from six or seven to three, and along with a reduction in taxes, this is expected to lower internet costs for consumers.

Taiyeb also criticised a 2010 policy that banned mobile operators from deploying their own fibre infrastructure and instead handed exclusive control to two NTTN (Nationwide Telecommunication Transmission Network) companies.

"The BDT 2100 crore Info Sarkar III project was effectively privatised by two individuals. This dual monopoly is coming to an end," Faiz Taiyeb stated.

Under the new framework, the monopoly will be dismantled, and state-owned enterprises like BTCL, Railway, and PGCB will be allowed to expand freely, according to Faiz Taiyeb.

Breaking up cartels and recovering dues
Taiyeb detailed how the IGW Operators Forum (IOF), formed in 2013 under Salman F. Rahman's leadership, monopolised international call termination and under-reported revenue.

"Mobile operators were banned from bringing in direct international calls, while IOFs were reporting revenue of $0.006 even though they terminated calls at $0.03 per minute. By 2024, the actual termination rate had dropped to $0.001, but IOFs were still reporting $0.0004 per minute," he added.

"This gap has caused the government to lose more than BDT 8,000 crore in revenue in the last 12 years. This huge amount of revenue loss has all gone into the pockets of Salman F. Rahman Gang," Faiz Taiyeb said.

BTRC is imposing 4 restrictions on defaulters - banning share transfers, ownership changes, licence renewals, and name changes. Relief will be granted only upon payment of 50% of dues and a notarised commitment to pay the rest within a year.

Planning for 5G and future internet growth
Taiyeb also projected internet usage to reach 80 Tbps in ten years, possibly 200 Tbps in high-growth scenarios. He warned against relying on narrow baseline figures of 7–8 Tbps, noting that internal caching and inter-cluster bandwidth must be factored into future infrastructure planning.

"Due to the millisecond (1000th of a second) level latency in 5G services, you can find mission critical usage, such as robotic surgery, driverless vehicles, port management, IoT, etc. as suitable areas for various innovations. Therefore, the more innovative we become in 5G services, the more its usage will increase," Faiz Taiyeb said.

A push for accountability
Taiyeb also responded to media reports that claimed the government tried to stop an anti corruption commission (ACC) investigation.

"Recently, a newspaper published a report that an attempt was made to stop the ACC investigation by issuing a DO Letter. This is not true at all. The DO Letter was basically a request for the ACC's sincere cooperation," Faiz Taiyeb clarified in his speech.

As part of the reforms, the government is preparing a new Telecom Policy, an updated Telecom Act, and clear service quality rules. Two White Paper Committees - one for telecom and another for ICT - will gather complaints and report any irregularities.

"BTRC, irregularities including appointments and transfers in Telecom can be informed to the Telecom White Paper. Similarly, any irregularities in the ICT Division or its projects started during the previous government can also be reported to the ICT White Paper Committee," Faiz Taiyeb said.​

 

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BTRC directs telcos to provide 1GB free internet on July 18

The telecom regulator has instructed all mobile phone operators to offer 1GB of free internet to users on July 18, in observance of “Free Internet Day”. The initiative is part of the government’s effort to commemorate the July Uprising, reports BSS. The decision was made during

thefinancialexpress.com.bd

BTRC directs telcos to provide 1GB free internet on July 18

FE Online Desk
Published :
Jul 09, 2025 21:52
Updated :
Jul 09, 2025 21:52

The telecom regulator has instructed all mobile phone operators to offer 1GB of free internet to users on July 18, in observance of “Free Internet Day”.

The initiative is part of the government’s effort to commemorate the July Uprising, reports BSS.

The decision was made during a meeting of the Bangladesh Telecommunication Regulatory Commission (BTRC) on July 8, chaired by the commission’s vice chairman, according to the BTRC order.

Top officials of mobile operators have confirmed the issue, saying that they have received a directive from the telecom regulator regarding the free internet.

Taimur Rahman, Chief Corporate and Regulatory Affairs Officer of Banglalink, said “We respect and support the initiative to honour those who lost their lives last July.”

He said, “Having just received the government’s request to provide 1GB of free internet on July 18, we are currently assessing its feasibility and exploring other options if required.”

“Moreover, as Toffee is our digital infotainment platform, we are also exploring if we can use this platform to offer something special in remembrance of last July,” he added.

Shahed Alam, Chief Corporate and Regulatory Officer at Robi Axiata Limited said that “Whether bonus data or gifts will be given to customers on any special occasion is essentially a commercial decision, and we believe operators should have the freedom to make that decision. Additionally, factors like network load and customer interest are also important in making such decisions.”

The initiative carries particular weight this year, as it marks the first anniversary of the internet blackout imposed by the than Sheikh Hasina-led government on July 18, 2024, during a violent crackdown on quota reform protests. The unrest culminated in her ouster weeks later, in early August.

According to the directive, BTRC approved the decision following instructions from the Ministry of Posts and Telecommunications aimed at reflecting public aspirations and promoting digital freedom.

To ensure smooth execution, operators have been asked to notify users in advance via SMS and extend full cooperation in observing the day.

The order suggested a SMS, mentioning “No one will take away freedom to use the internet. On the occasion of July Uprising Day, (you are) receiving 1GB of data on July 18 with validity for 5 days.”

BTRC emphasized that this symbolic gesture of digital freedom aligns with the spirit of the July Uprising and serves the broader public interest.

However, senior officials from a mobile operator noted that telecom companies are still obligated to pay taxes on all distributed data. “The government should clarify whether the free data will be tax-exempt,” the officials said, adding that operators must also cover network transmission and delivery costs. “BTRC needs to clarify whether other stakeholders will support this effort.”​

 

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New policy to end 15 years of telecom irregularities: Taiyeb

The interim government is working on a new telecom policy aimed at reforming the sector, ending 15 years of what it termed “fascism,” and ensuring a generational transformation in service delivery, said Faiz Ahmad Taiyeb, Special Assistant to the Chief Adviser on Posts, Telecommunicatio

thefinancialexpress.com.bd

New policy to end 15 years of telecom irregularities: Taiyeb

UNB
Published :
Jul 12, 2025 23:54
Updated :
Jul 12, 2025 23:54

The interim government is working on a new telecom policy aimed at reforming the sector, ending 15 years of what it termed “fascism,” and ensuring a generational transformation in service delivery, said Faiz Ahmad Taiyeb, Special Assistant to the Chief Adviser on Posts, Telecommunications and ICT.

Speaking at a roundtable titled “Telecom Network and Licensing Policy Reform”, organised by the Telecom and Technology Reporters Network, Bangladesh (TRNB) at a hotel in Dhaka on Saturday, Taiyeb said the policy is being shaped to shift from mere connectivity to service-oriented networks.

“The new generation demands a new kind of transformation. That’s why we are preparing a policy focusing on next-generation services. We are clearing out the clutter in the sector—even if it hurts vested interests,” Taiyeb said.

“Logical suggestions will be considered, and the government's positive initiatives should be welcomed,” he added.

Referring to operator profits, he said, “Operators are earning Tk 400 crore in dividends and still express dissatisfaction. It’s time they look out for national interests.”

Taiyeb made it clear that licences will no longer be limited arbitrarily.

Instead, he said, the number will depend on performance and obligations.

Licences issued merely for toll collection in the past will be discontinued, he added, noting that research would determine the optimal number of licences and foreign company representatives must work in the country’s broader interest.

On improving services, he warned, “Mobile operators must enhance service quality or risk losing customers.”

He also highlighted efforts to free up low-band frequencies and reform the existing telecom ecosystem.

BTRC Chairman Major General (retd) Md Emdad Ul Bari said telecom is a real-time service and any changes must be sustainable.

“With less than 50% of the population using the internet, licence cancellation is not on the table. The policy includes a migration plan, and stakeholder collaboration is essential,” he said.

Posts and Telecommunications Division Secretary Zahurul Islam said the new policy would attract both domestic and foreign investment.

ISPA President Aminul Hakim called for eliminating tax disparity, stating, “ISPs meet 65–70% of the 7.5 terabit demand yet pay 15% tax, while mobile operators with 35% market share pay none.”

MTAB Secretary General Mohammad Zulfikar, presenting the keynote, said telecom operators are central to the digital economy. “Despite 65 million social media users, 90 million remain unconnected. Rising operating costs, along with investment caps in the proposed policy, are alarming for the sector,” he warned.

The discussion was chaired by TRNB President Samir Kumar Dey, with a welcome speech by General Secretary Masuduzzaman Robin.

Grameenphone CEO and MTAB President Yasir Azman, Banglalink CEO Erik Aas, Teletalk MD Nurul Mabud, corporate affairs heads from major operators, World Bank consultant Mahtab Uddin Ahmed, and Fiber@Home CIO Suman Ahmed Sabir also spoke at the event.​

 

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Govt forms panel to review draft telecom policy

The government has formed a committee to review the draft Telecommunications Network and Licensing Policy 2025, according to a notification issued by the Cabinet Division yesterday.

www.thedailystar.net

Govt forms panel to review draft telecom policy

The government has formed a committee to review the draft Telecommunications Network and Licensing Policy 2025, according to a notification issued by the Cabinet Division yesterday.

Planning Adviser Prof Wahiduddin Mahmud will lead the panel, which has been tasked with reviewing the proposed policy's economic, technical and implementation aspects.

The development comes as local firms in the telecom sector expressed concern that the new policy would disfavour them.

The committee will also analyse the policy's background, assess possible unintended consequences, and evaluate its long-term economic impact and technical viability.

It has the authority to bring in more members if needed, and may invite relevant officials, experts or stakeholders to its meetings.

Other members of the committee include Environment, Forest and Climate Change Adviser Syeda Rizwana Hasan, Commerce Adviser Sk Bashir Uddin, and Special Assistant to the Chief Adviser for the Ministry of Posts, Telecommunications and Information Technology Faiz Ahmad Taiyeb.
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Bangladesh telecom sector: the case of state-owned Teletalk

Mobile telecommunication in Bangladesh is rapidly transforming from primarily a voice and SMS service to a mobile data-dominated market. Exponential growth in mobile internet adoption is driving significant market expansion. With changing technological capabilities and shifting consumer preferences

thefinancialexpress.com.bd

Bangladesh telecom sector: the case of state-owned Teletalk

TIM Nurul Kabir
Published :
Aug 11, 2025 23:25
Updated :
Aug 11, 2025 23:25

Mobile telecommunication in Bangladesh is rapidly transforming from primarily a voice and SMS service to a mobile data-dominated market. Exponential growth in mobile internet adoption is driving significant market expansion. With changing technological capabilities and shifting consumer preferences, the mobile telecom industry landscape in Bangladesh is evolving at a rapid pace.

Bangladesh's telecom market is primarily dominated by the private mobile operators. Grameenphone, the market leader, is a joint venture between Grameen Telecom and Telenor. The second largest mobile operator in Bangladesh, Robi Axiata is owned by Axiata of Malaysia and Bharti Airtel of India. Third largest operator, Banglalink is owned by VEON Ltd.

The mobile network operators (MNOs) of Bangladesh are increasing market segmentation to deliver innovative digital services such as education and healthcare services, mobile financial service (MFS), mobile bill payment, mobile ticket reservation, e-commerce, video streaming, music, IPTV and value-added services for target consumer segments.

In comparison with private operators, the lone state-owned mobile operator Teletalk Bangladesh Limited has failed to secure a competitive position and thrive in the telecom market although the state-owned enterprise (SOE) gets various privileged support from the government.

TELETALK INCURS LOSS DESPITE GOVERNMENT SUPPORT: When Teletalk launched commercial operation with 2G services in 2004, the primary mission of the company was to acquire a significant market share of the booming telecom sector by providing countrywide network coverage. Launch of Teletalk created huge enthusiasm among customers. Nevertheless unsatisfactory service quality of Teletalk impelled many customers to gradually switch to other operators.

Because of its being the state owned operator, Teletalk was given the priority to introduce 3G mobile phone services in Bangladesh and was therefore the first operator to launch 3G services in 2012. Private mobile operators officially launched 3G mobile data service in October 2013. The government gave privilege to Teletalk by making the use of its SIM cards mandatory for availing significant government services. Teletalk was also given priority in the radio frequency (spectrum) allotment for both 4G and 5G. As was the case, Teletalk was the first operator to launch 5G services on a trial basis in December 2021. Of the remaining three mobile operators, Banglalink Digital Communication Limited launched 5G services on a trial basis in selected locations in July 2022, while Robi Axiata Limited and Grameenphone Limited launched 5G services on a trial basis in selected locations in September 2022.

Despite getting priorities and privileges from the government, Taletalk has failed to ensure quality service and attain significant number of subscribers. According to data of the Bangladesh Telecommunication Regulatory Commission (BTRC), the total number of mobile subscribers reached 186.22 million in March 2025, of which Grameenphone had 84.09 million subscribers, Robi, 56.36 million and Banglalink, 38.23 million. Teletalk had only 6.58 million subscribers in March 2025, which is merely 3.53 per cent of total subscribers.

The state-owned operator has a persistent trend of incurring net losses since its inception. According to the audited financial report published in the Directors' Report of the Company, Teletalk incurred a net loss amounting Tk. 179.89 crore in the fiscal year ending on June 30, 2024.

BTCL RESOURCES REMAIN UNDERUTILISED: Teletalk was initially launched by Bangladesh Telephone and Telegraph Board (BTTB) as a subsidiary project of mobile network service, named BTTB bMobile. Later the company was rebranded to Teletalk Bangladesh Limited as the only state-run mobile operator of Bangladesh.

BTTB became a public limited company on July 1, 2008, and was renamed Bangladesh Telecommunication Company BTCL. As SOE, BTCL offers services such as telegraph, local telephone networks, nationwide dialing (NWD), international telephone call facilities, international circuit leasing, international maritime satellite communication, and internet and data services.

BTCL has more resources than any other major mobile operator in Bangladesh. According to the BTCL annual report, the company holds total assets of around Tk. 70,000 crore. Among these, the assets related to exchange equipment, transmission, and outside plant are valued at approximately Tk. 12,000 crore. The value of BTCL's buildings is around Tk. 1,000 crore. BTCL holdings claim the highest value, estimated at Tk. 50,000 crore.

Despite vast resources possessed by the SOE, core business operations of BTCL remain deeply flawed. Revenue from key segments such as the International Gateway (IGW), telephone services, and value-added services has reportedly continued to decline. Poor service quality and lack of technological expansion have contributed to the decline of operational efficiency and service revenue.

According to the Annual Report of BTCL, the SOE claimed a net profit of Tk. 67 crore in fiscal 2023-24 on account of non-operating income obtained from fixed deposit receipts (FDRs), which stood at Tk. 168 crore in FY23. Within this declining business scenario, the extensive infrastructure owned by BTCL, including towers used for telephone and internet services remain underutilised.

POLICY PROVISION FOR SOE-PRIVATE PARTNERSHIP: Bangladesh's telecom market is characterised by intense innovation and forward-looking business strategies. The mobile industry has seen significant investment in network expansion and technological upgrading, particularly in 4G technology deployment and preparation for 5G services. The private MNOs including Grameenphone, Robi and Banglalink are actively investing to expand their digital services portfolios.

When the National Telecom Policy was formulated by the Ministry of Post and Telecommunications in 1998, it was envisaged in the policy objectives that: resources to the sector are to be maximised through participation of both public and private entrepreneurs in operating the services in areas where it is economically and socially justified. Efforts shall be geared up and coordinated to create an investment climate to help optimisation of resources from both national and international sources (Article 3.7).

For enhancing competitiveness of SOE, article 7.10.1 of the National Telecom Policy 2018 has the provision to: encourage the state owned telecommunication enterprises to adopt competitive business strategies including human resource development, management restructuring, partnering with private sector and attracting local or foreign investment.

BUSINESS FOOTPRINTS OF SOES: Telenor, the 58.8 per cent shareholder of Grameenphone, is a state-owned multinational telecommunications company of Norway. Grameenphone was the first Telenor venture in the Asian telecom market. The success of Grameenphone led Telenor to increase focus in Asian markets with successful entries in Pakistan, Myanmar and other Asian countries.

Similarly, Axiata of Malaysia holds a major controlling stake of 61.82 per cent in Robi, the second largest mobile network operator in Bangladesh. Axiata was incorporated in 1992 as the mobile and international operations arm of Telekom Malaysia Berhad, the national telecommunications company of Malaysia.

If SOEs such as Telenor and Axiata can run successful businesses operations and create global and international footprints, it is sheer misappropriation of resources and lack of utilisation of business opportunities on the part of Teletalk to keep incurring losses for decades.

PROSPECTIVE TRANSFORMATION OF TELETALK: In present-day world businesses are immensely dynamic and require situation-wise decision-making along with long-term planning and projections. Due to lack of on-time effective decision-making by the board of Teletalk and absence of competency to chalk out business strategies, the state-run mobile operator has remained incapable to formulate significant short-term action plan and/or long-term strategic plan.

As is obvious from the decline in subscriber numbers, quality of services and revenue, the business condition of Teletalk has worsened to such an extent that the auditor of the company reportedly expressed doubt on the company's ability to continue operations. And for some time now, there has been speculation regarding handing over the state-run mobile operator to local or foreign investors for improving its services and making the company profitable.

According to a report by the global market research firm Mordor Intelligence, Bangladesh telecom market size is estimated to be $5.08 billion in 2025, and is expected to reach $6.27 billion by 2030, with a compound annual growth rate (CAGR) of 4.31 per cent during the forecast period (2024-2030).

If business-terms are successfully negotiated with prospective foreign investor, there is a bright prospect of attracting substantial foreign direct investment (FDI), which would thus bring in much required capital for network expansion, management restructuring and service improvement of Teletalk. With the right mix of investment, competitive strategies and long-term planning the state-owned telecom operator can transform its loss-making business to a profit-making venture.

T.I.M. Nurul Kabir, Executive Director, Foreign Investors Chamber of Commerce and Industries (FICCI), is an analyst on business, technology and policy.​

 

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Telecom reforms revolve around efficiency, price cuts

Over the past year, the interim government has pushed reforms in the telecom sector to improve service, remove unnecessary layers, and lower costs for consumers.

www.thedailystar.net

Telecom reforms revolve around efficiency, price cuts

Photo: star/file

Over the past year, the interim government has pushed reforms in the telecom sector to improve service, remove unnecessary layers, and lower costs for consumers.

Some initiatives are already in place, while others remain on paper. Authorities say full implementation could bring the sector in line with international standards.

At the centre of the overhaul is the draft "Telecom Network and Licensing Reform Policy 2025", prepared by the Ministry of Posts and Telecommunications and the Bangladesh Telecommunication Regulatory Commission (BTRC). The draft is yet to be finalised.

It proposes a simplified licensing system, limits on foreign ownership, and the removal of costly intermediary layers that inflate prices.

Currently, the sector operates a confusing network of six or seven licensing layers. The draft reduces this to three: international, national, and service.

Foreign ownership would be capped at 49 percent for the international layer and 55-60 percent for the national layer. Internet service providers (ISPs) would benefit from a "light-touch" regime with less paperwork.

The biggest change is the planned removal of middle-layer companies, including Interconnection Exchanges (ICXs), International Gateways (IGWs), and International Internet Gateways (IIGs).

Introduced in 2008 to stop illegal internet calls (known as VoIP), these companies often acted as middlemen, charging fees without adding value.

Mobile operators were banned from connecting calls from each other directly, forcing them through ICXs.

A cartel was formed by some of these companies in 2014, called the IGW Operators Forum, controlling call termination and funnelling Tk 631 crore to a Beximco-linked account. The BTRC cancelled their authority earlier this year.

IIGs, originally to manage international internet traffic, are now redundant as ISPs and mobile operators can handle bandwidth directly.

"Despite minimal infrastructure investment, often with just a few crores of taka, licensees extracted hundreds of crores through strategic positioning and regulatory shielding," said Faiz Ahmad Taiyeb, special assistant to the chief adviser for posts and telecom.

With many ICX and IGW licences expiring in 2027, the BTRC says it will not renew them. Removing these layers should lower prices and improve efficiency without harming security or monitoring.

Telecom operators have cautiously welcomed the changes.

"Overall, the policy is a good start, and we welcome it," said Shahed Alam, chief corporate and regulatory affairs officer at Robi Axiata.

"However, we have raised some concerns, like curbing foreign shareholding, and introducing irrelevant parameters such as rollout obligations, spectrum configuration, and fibre rollout obligations," he added.

FIBRE FOR ALL

Another major reform targets the country's internet "motorways". Until now, Fibre@Home and Summit Communications dominated the national network.

Mobile companies were barred from installing their own equipment on these cables, making them reliant on these providers.

That restriction has been lifted, allowing mobile operators to install data transmission equipment on leased fibre networks.

The government also aims to create a national "fibre optic bank", using unused cables from state-owned utilities such as the power grid and railways.

About 40 percent of the country's 78,400km of fibre is unused. Sharing it could reduce internet costs, speed up 5G rollout, and bring fast connections to rural areas.

POWER AND INDEPENDENCE

The government is revising the Bangladesh Telecommunication Act, 2001, which strengthened ministerial control in 2010.

The new plan gives the BTRC more autonomy in operational matters such as approving new products or staff promotions, while major decisions, including licence renewals, spectrum allocation, and changes involving state-owned companies, remain under ministerial oversight.

"The intent is to create a checks and balances model," Taiyeb said, adding that it ensures strategic alignment across ministries.

Experts caution that true independence is limited.

Barrister Fatema Anwar, a lawyer at the Supreme Court, said, "By allowing more freedom only in operational matters while retaining control over major decisions, particularly those involving six state-owned telecom entities, the risk of conflict of interest and political interference persists."

BTRC Chairman Major Gen (retired) Md Emdad ul Bari said neutrality is a must. "If we continue to treat state-owned and private operators under different standards, we undermine the very rationale for having an independent regulator."

However, Taiyeb argues that public operators are needed to guarantee coverage in unprofitable areas. "We must protect public interest through these institutions."

RIGHTS AND BANDWIDTH

The ministry has ordered the removal of laws that allow internet shutdowns, and called for phone and internet surveillance to have more oversight, bringing practices closer to international standards.

It also proposed reforms to the National Telecommunication Monitoring Centre (NTMC) to improve accountability, transparency, and judicial supervision.

Support from Chief Adviser Muhammad Yunus helped bring Starlink, Elon Musk's satellite internet service, to Bangladesh.

State-owned Bangladesh Submarine Cables PLC (BSCPLC) now handles 4 terabits per second of international bandwidth, more than double last year's capacity. The upcoming SEA-ME-WE 6 cable will add 17 terabits per second.

LONG-TERM VISION NEEDED

A review panel, led by Planning Adviser Wahiduddin Mahmud, is currently assessing the draft Telecom Network and Licensing Reform Policy amid protests from local firms wary of foreign dominance.

Telecom analyst Abu Nazam M Tanveer Hossain said reforms must follow a clear sequence. First, the National Telecom Policy should be updated with a 10-20 year vision.

Subsequently, there should be amendments to laws and rules, said Hossain. "Only afterwards, there could be adjustments to rules and licences."

"Any deviation from this structure leads to inconsistency, reduces investor confidence, and compromises consumer protection," he said.​