[🇧🇩] Telecommunication Industry in Bangladesh

[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...

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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.​