[🇧🇩] 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.​