[🇧🇩] Telecommunication Industry in Bangladesh

[Saif]

Source : https://www.thedailystar.net/business/news/telecom-sectors-revenue-cross-5b-2023-1840516

Telecom sector’s revenue to cross $5b by 2023​

USAID report says

The telecommunication industry’s revenue will grow by 34 percent in the next five years to $5.08 billion from $3.8 billion at present, on the back of expanding user base and wide range of services, said the USAID in a new study.

“The sector is quite large in size and has a crucial contribution to achieving the goal of making Bangladesh a middle-income country,” said the report of the United States Agency for International Development (USAID) published recently.

The industry employs about 7.60 lakh people directly, of which 92.5 percent are unskilled and 7 percent are women, the Comprehensive Private Sector Assessment report said.

The job growth rate in the sector will be 9 percent from 2016 to 2020.

The USAID Bangladesh has listed 16 emerging sectors in the study which could contribute a lot to the country’s economic development, beyond that facilitated by the readymade garment sector. Telecommunication is one of them.

“The mobile telecom service in Bangladesh is very promising as the operators are providing standard services with extensive facilities to customers,” said M Farhad, secretary general of the Association of Mobile Telecom Operators of Bangladesh (AMTOB).

The report said the country is undergoing transformation on social and economic fronts. Rapid changes have been observed in the lifestyle of the population.

Connectivity has been an integral part of modern-day life, thus accelerating the growth in mobile communication and internet use.

The use of social media platforms such as Facebook, WhatsApp, Viber and video-streaming sites like YouTube have become part of everyday life for all classes of people, mostly young and middle-aged groups.

The use of social media is growing every day, resulting in more and more consumption of internet data. Steady population growth and increase in purchasing power will continue to drive the telecom sector growth, the report added.

In 2016-17, the telecommunications sector accounted for 6.98 percent, or $29.6 billion, of the economy. The contribution of the sector is highly dominated by mobile operators with a direct impact of 58 percent, followed by distributors and retailers (25 percent), infrastructure providers (12 percent), and the handset industry, content applications and other services providers (5 percent).

Shahed Alam, chief corporate and regulatory officer of Robi, said the country has made tremendous progress towards implementing the Digital Bangladesh vision by 2021.

He said with Robi, mobile operators have created the platform for the digital economy to take off in the country.

“As part of that we are already in the process of transforming ourselves into a digital company by diversifying our product and service portfolio through digital innovation. This transformational journey is helping us get integrated with all elements of the country’s rich and varied socio-economic fabric.”

“Therefore, the telecom sector is becoming the key enabler for the country to achieve the targets set in the Sustainable Development Goals.”

The report found that the total number of smartphone users was 48 million in 2017 and it will go up by threefold to 138 million in 2025.

“As the number of smartphones will grow, the mobile broadband connection will grow accordingly.”

The report said the telecom sector has experienced sluggish growth in the face of rapid digital disruption and an unfavourable regulatory regime.

It listed the challenges facing the sector. They include rising use of communication applications which are gradually eating up the core revenue stream; higher corporate tax; higher customer acquisition price; the lowest return; and low investment for network upgradation and maintenance.

It recommended supporting internet-based startups that have cross-cutting impacts on industries such as telemedicine and ridesharing as well as introducing IT-enabled working space to support entrepreneurs, freelancers, and crowdsourcing in rural areas.

AMTOB’s Farhad said though the market is growing rapidly, the industry is suffering a lot due to over-regulation, regulatory unpredictability, and a weak telecom ecosystem.

“Super high taxation and the high price of spectrum are also impacting the industry. Given the scenario, it will be very challenging to roll out 5G service and implement Digital Bangladesh endeavour within the stipulated time.”

“We hope that the government and the regulator will understand the reality and take appropriate actions to overcome the challenges.”

Alam of Robi said the regulator’s traditional command and control mindset is failing to see beyond the immediate concerns of revenue collection.

“If this mindset persists, the country will only slow down its progress towards the creation of a full-fledged digital economy.”

The USAID report called for an initiative, in collaboration with small internet service providers, to provide last-mile services.

At the end of fiscal 2017, there were 85 million unique subscribers and it will be 107 million in 2025, making Bangladesh the fifth largest mobile market in the Asia Pacific and the ninth largest market in the world in terms of unique subscribers.

Active mobile connections will reach 190 million at the end of 2025 and the number of 4G users will be 41 percent, the USAID report said, referring to the GSMA, a trade body that represents the interests of mobile network operators worldwide.

 

[Saif]

Current economic situation challenging for telcos

The current economic situation has emerged as one of the main challenges for the telecom sector of Bangladesh as sustained high inflation could hinder the purchase of telecom services, according to a top executive of a multinational mobile phone company.

www.thedailystar.net

Current economic situation challenging for telcos​

Says Vivek Sood, group CEO of Axiata

The current economic situation has emerged as one of the main challenges for the telecom sector of Bangladesh as sustained high inflation could hinder the purchase of telecom services, according to a top executive of a multinational mobile phone company.

"The biggest concern for me is the country's overall macroeconomic environment, including forex availability and inflation, which is affecting operators like Robi," said Vivek Sood, group CEO of Axiata Group Berhad.

"When people can't afford services, they perceive them as expensive, leading to reduced consumption," he added in a recent interview with The Daily Star.

The Malaysia-based Axiata has a controlling stake in Robi Axiata, which is the second-largest mobile network operator in Bangladesh.

"The exchange rate of taka is currently experiencing depreciation, and forex availability has also become a challenge," he said.

"But so far, our management has been commendable in handling letters of credit and ensuring timely payments. However, this situation is not sustainable for long-term prospects," Sood added.

He said the availability of US dollars and the associated exchange rate pose major concerns for Axiata's operations in the country.

This is because despite Robi's strong performance, Axiata's US dollar earnings from the company are being adversely affected by the exchange rate.

"I believe this is an area where a concerted effort from banks, the central bank, and regulatory bodies is crucial. Otherwise, it will adversely impact our long-term ability to invest in Bangladesh," he added.

However, he reiterated Axiata's rock-solid commitment to Robi in regards to managing the US dollar shortage.

"As far as Axiata is concerned, we will provide the necessary support to Robi when required in case of operational difficulties," said Sood, who also served Grameenphone as CEO.

He suggested that the telecom regulator or government should assess which industries are driving economic growth or facing challenges during these difficult times.

"By doing so, the government could implement the right kind of taxation that would facilitate our continued investment in the business," he said.

Sood also said Bangladesh stands out as one of the most robust markets among all emerging and frontier markets.

Axiata serves a customer base of 176 million across the nine markets in which it operates, with 56 million of these customers located in Bangladesh.

As such, Sood spoke with exuberance regarding the prospects of Bangladesh's market.

For Axiata, Bangladesh provides a substantial customer share, and the consistent GDP growth of the country, hovering around 6-7 percent, presents ample opportunities.

"With a very young population, approximately half of which is aged between 18 and 55, there is a strong demand for digital content and services, making Bangladesh an attractive market," he said.

Besides, studies indicate that Bangladesh is likely to maintain its growth, offering significant opportunities in digital services and ventures beyond mere connectivity.

However, there are also challenges to be considered.

"While we have achieved significant revenue growth, translating it into profit has always been a struggle in this market. Consequently, obtaining a return on our investment is a challenge," Sood said.

"Having said that, we are a long-time player and will continue to invest in this market to deliver the vision of Smart Bangladesh," he added.

From Axiata's perspective, Robi contributes significantly to its financials, accounting for one-fifth of its revenue and one-third of its customer base.

Robi is a company that has experienced growth, especially with the implementation of 4G services that commenced in 2018.

"This has had an incredible impact," he said.

"However, the challenge, as I mentioned, is multifaceted. Firstly, this market demands substantial investment, primarily in terms of capital expenditure to fuel growth," he added.

A key reason for this is the country's extremely low average revenue per user (ARPU).

Axiata provides services with an ARPU of $1.3 in Bangladesh, whereas it receives around $4 or $4.5 per user in other markets.

Secondly, the existing tax regime is not very favourable.

For instance, the imposition of a minimum turnover tax is counterproductive for investment as it does not consider the profits earned but is based on revenue.

Moreover, the tax rates are higher in Bangladesh than any other market where Axiata operates.

"I believe that by closely collaborating with the government and proposing solutions, we can make this market more attractive for foreign investment, unlocking significant opportunities," Sood said.

He also spoke about the country's decision on entering the 5G era.

According to him, the challenge with 5G is the lack of well-defined use cases and a slow evaluation of its practical applications.

He said Bangladesh represents a market where there is substantial room for the development of 4G as data consumption lags behind international standards.

In this context, it is important to emphasise that 5G should not lead to the proliferation of multiple, separate networks, as was the case with 4G.

Additionally, spectrum pricing should be transparent and well-defined.

But in a market like Bangladesh, it might be more prudent for mobile operators to consolidate networks for greater efficiency before a full transition to 5G.

Successful 5G implementation requires extensive infrastructure, including fibre networks for backbones and tower connectivity.

However, the current licensing framework restricts significant fibre investments, which has been a challenge even for 4G operations.

Device availability and affordability also pose concerns, especially given the relatively high device prices in the 5G market, exacerbated by a slowdown in the Chinese market, Sood added.

With this backdrop, he opined that the government should strike a balance between encouraging 5G adoption and ensuring affordable devices for the people.

In his perspective, regulatory bodies should first focus on readily available services that could be potentially developed further in the 4G domain.

Second, a comprehensive policy framework should be established that encompasses infrastructure development, fibre optics deployment, device availability, spectrum pricing, and the prevention of multiple network constructions, which can significantly drive up implementation costs.

Asked about the ability of mobile operators to lay fibre in countries where Axiata operates, Sood said all countries other than Bangladesh grant permission in this regard.

"In Bangladesh, operators are not allowed to lay fibre, creating a significant bottleneck in building a robust network backbone," he said.

Sood highlighted Robi's remarkable achievement in the second quarter of 2023, when it registered the highest revenue growth among all operators in the Asia Pacific region.

"19 percent growth is an exceptional performance that can be attributed to a comprehensive strategy executed by the management team," he said.

This strategy involved a recent spectrum rollout, improvements in the voice network, excellence in distribution, strategic brand positioning of Airtel in Robi's strongholds like Cumilla and Chattogram, efficient investment monetisation, and an increase in data consumption.

"The focus now shifts to ensuring that this impressive growth performance translates into improved profitability," Sood added.

 

[Saif]

China new year holiday spending surges past pre-pandemic levels

Domestic spending on tourism came in at 632.7 billion yuan ($87.9 billion), up 7.7 percent from 2019

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BTRC allows two more firms to make handsets locally​

View attachment 2978
Photo: BTRC

The telecom regulator of Bangladesh recently permitted two more local companies to manufacture and assemble mobile handsets, with the move coming amid a downturn in overall sales and production.

And with the addition of these two -- Salextra Limited and Halima Mobile Industries -- there are now 17 mobile handset makers in the country.

However, the Cumilla-based Halima Mobile Industries, an arm of Halima Group, is yet to begin production due to difficulties in opening letters of credit.

On the other hand, Salextra Limited is already churning out Nokia-branded smartphones and feature phones at its Gazipur unit.

In 2021, Vibrant Software (BD) Ltd, a joint venture of the UK's Vibrant Software and Bangladesh's Union Group, became the first to get approval for assembling Nokia devices and set up a factory to this end.

And using its arm Cellular Mobile (Pte) Limited (CMPL), Union Group was the first to import Nokia devices to the country in 1996.

However, the company's journey in local manufacturing of Nokia devices came to an end last year due to a dispute between the partnering companies.

Shakib Arafat, managing director at Salextra, said they are a local tech-device manufacturing startup.

"We recently received a license from the BTRC and partnered with HMD Global. We are now a manufacturer and distributor of Nokia-branded phones in Bangladesh," he added.

HMD Global, a company set up by former executives of Nokia and Microsoft, secured a licence for the marketing and manufacturing of Nokia in 2016.

"At our 54,000 square feet plant, we are now assembling Nokia phones and will go for manufacturing soon," Arafat said.

He also said Salextra was launched in 2020 as a startup with only 5 employees and the number has since risen to nearly 500.

Apart from its partnership with Nokia, the company also produces smartwatches, neckband headphones, earbuds and other gadgets.

"We have the capacity to produce 3 lakh feature phones and smartphones on six production lines. A total of 370 people are employed by our mobile operations, with 40 percent being women," he added.

Salextra has already sold about 1.7 lakh Nokia handsets in the local market over the past month.

Meanwhile, Halima Group, which produces mobile accessories such as chargers, batteries, power banks and feature phones for other vendors, will now make feature phones of their own brand.

With the approval, the company will focus on mainly producing feature phones and plans to eventually produce smartphones too.

"We are planning to design a smartphone but we need more time for that," said Ezaz Hossain Khan Joy, assistant general manager for mobile operations of Halima Mobile Industries.

The company now employs about 130 people at its plant, which has three assembly lines with the capacity of producing 7,000 mobile phones each day.

"About 90 percent of the employees are women," Joy added.

However, production has yet to start as the unit is suffering from raw material shortages due to difficulties in opening letters of credit.

"It will take some time to bring the materials," Joy said.

The difficulty in opening letters of credit has been prevalent for mobile manufactures over the past year, impacting the entire supply chain, according to industry people.

Besides, local handset production dropped in 2023, marking its first decline since domestic production began in 2017, owing to a rise in the value of the US dollar alongside taxes and lower sales amid erosion of peoples' purchasing power.

Domestic firms produced 2.33 crore mobile phones last year, down 26.35 percent year-on-year, according to the Bangladesh Telecommunication Regulatory Commission (BTRC).

Consumer spending has also been tightened significantly owing to persistently higher inflation for the past two years while the expanding grey market poses another threat to the industry.

The production of handsets in Bangladesh made impressive strides in recent years, aided by huge tax benefits unveiled by the government in fiscal year 2017-18.

In the latter half of 2017, when Bangladesh allowed local manufacturing by offering a huge amount of tax benefits, only 40,000 cellphones were produced by local firm Walton.

But things started to accelerate the following year as local entities engaged in deals with top global brands, including Samsung, Tecno and Symphony, to set up manufacturing facilities in Bangladesh.

A total of 15 plants have so far been established in the country, producing 10.35 crore handsets as of 2022, according to the BTRC, which provides manufacturing permits.​

 

[Saif]

Teletalk launches eSIM

Teletalk, Bangladesh's state-owned mobile operator, has officially entered the era of eSIM technology, marking a new era in digital connectivity for the state-owned operator.

www.thedailystar.net

Teletalk launches eSIM​

Teltalk enters the era of eSIMs.

Teletalk, Bangladesh's state-owned mobile operator, has officially entered the era of eSIM technology, marking a new era in digital connectivity for the state-owned operator. The inauguration, led by Zunaid Ahmed Palak, State Minister for Post, Telecommunication and Information Technology, took place at the ICT Tower in Agargaon, Dhaka, on Martyr's Day, February 21.

The introduction of eSIM by Teletalk follows the steps taken by private operators Grameenphone, Robi, and Banglalink. Grameenphone was the first to launch eSIM in March 2022, with the other operators soon following suit.

An eSIM, or embedded SIM, represents a departure from traditional SIM card technology. Unlike physical SIM cards that require manual insertion into devices, eSIMs are built directly into handsets, allowing for seamless network connection without the need for physical swapping of SIM cards.

Industry experts predict a substantial increase in eSIM usage globally, with estimates suggesting that by 2025, the number of eSIM connections will rise to 3.4 billion. This trend underscores the growing shift towards more integrated and flexible mobile telecommunications solutions.​

 

[Saif]

eSIM in Bangladesh: Here's everything you need to know

Recently, eSIMs have been making waves as the next step in mobile technology. What is it, and how can we use it in Bangladesh? Here are all the important details you need to know about eSIM.

www.thedailystar.net

eSIM in Bangladesh: Here's everything you need to know​

Recently, eSIMs have been making waves as the next step in mobile technology. What is it, and how can we use it in Bangladesh? Below are all the important details you need to know about eSIM in Bangladesh.
​

What is eSIM?​

Embedded-SIM, or eSIM, is a SIM card that can be electronically programmed into a mobile phone without the need for manual insertion. It works just like a regular SIM but does not require a physical card, and only works on devices with pre-installed eSIM support.
​

Can you use eSIM in Bangladesh?​

Grameenphone has officially launched eSIM service in Bangladesh on 1 March 2022.

You can also use eSIM in Bangladesh using international operators. There are data packages and plans available on the internet which will allow Bangladeshis to gain access to eSIM functionality.
​

If I use eSIM, will a new mobile number be assigned to me?​

That depends solely on the operator you plan on using. Some international operators will assign a brand new phone number to be used with the eSIM, but some will not.
​

Can I make calls using eSIM?​

If you use an international operator to use eSIM in Bangladesh, you can only use mobile data.
​

Is eSIM service costly?​

Because eSIM uses international roaming services, which can be through any Bangladeshi operator, the cost for the mobile data will be quite costly. The charge incurs from both the Bangladeshi operator as well as the international operator providing the eSIM support, hence the added cost.
​

Can my phone run eSIM?​

Very few devices currently have eSIM support, and they need to be carrier-enabled for the eSIM to work.
Apple devices such as iPhone XR, iPhone 11 Pro, iPhone 12 and 13 have built-in eSIM support. Versions of Samsung Galaxy S20, S21, Note 20 and Galaxy Fold, as well as Google Pixel 3, 3a, 4, 4a, 5, 5a and 6 Pro also support eSIM.​

 

[Saif]

Summit acquires 2,012 towers from Banglalink

Summit Towers Limited, a subsidiary of Summit Communications Group, has announced acquisition of 2,012 towers from Banglalink Digital Communications Limited, said a press release. The...

www.newagebd.net

Summit acquires 2,012 towers from Banglalink​

Business Desk | Published: 23:17, Feb 20,2024

Summit Towers Limited, a subsidiary of Summit Communications Group, has announced acquisition of 2,012 towers from Banglalink Digital Communications Limited, said a press release.

The acquisition was completed with transfer of Tk 1,100 crore to Banglalink. To celebrate this occasion, Summit Communications Group hosted an event titled ‘Celebrating Synergy’ at the Ruposhi Bangla grand ballroom of Hotel Intercontinental in Dhaka on Monday.

State minister of posts, telecommunications and information technology Zunaid Ahmed Palak was present as chief guest at the event. ICT division secretary Md Shamsul Arefin and Bangladesh Telecommunication Regulatory Commission chairman Md Mohiuddin Ahmed were present as special guests and Summit Group of Companies founder chairman Muhammed Aziz Khan was present as an honoured guest. Summit Communications chairman Muhammad Farid Khan, managing director and chief executive officer Md Arif Al Islam and executive director Fadiah Khan, among others, were present at the ceremony.

VEON group CEO Kaan Terzioglu and Banglalink CEO Erik Aas were also present.

Zunaid Ahmed Palak said, ‘I would like to appreciate the acquisition process for acquiring these 2,012 towers. With this huge number of towers, Summit Communications will be able to provide much more quality services to the mobile network operators.’

Kaan Terzioglu said, ‘This collaboration enables us to leverage our resources efficiently to create the country’s most diversified and innovative digital portfolio. With innovation, collaboration, and a shared vision, we can unlock the full potential of Bangladesh’s digital future.’​

 

[Saif]

BTRC allows mobile operators to offer wireless broadband

The internet regulator has allowed telecom operators in Bangladesh to provide fixed wireless access (FWA), enabling their users to get wifi connections without cables.

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BTRC allows mobile operators to offer wireless broadband​

The internet regulator has allowed telecom operators in Bangladesh to provide fixed wireless access (FWA), enabling their users to get wifi connections without cables.

The move will likely transform the broadband internet business in the country, creating competition among current broadband internet service providers (ISPs) and telecom operators as users will have more options.

With the new 5G guidelines coming into force, operators with FWA service approval will be able to offer high-speed internet access through wireless networks to fixed locations like homes and businesses.

It will also extend broadband coverage efficiently, especially in areas with limited wired infrastructure.

FWA generally leverages the high-speed, low-latency capabilities of 5G networks to deliver broadband internet access wirelessly.

However, as the country's telecom operators are still reluctant to launch 5G commercially, the expansion of the service will take time, according to industry people.

In Bangladesh, telecom operators provide mobile internet services while ISP licensees provide broadband services.

Generally, mobile operators deliver mobile internet services through cellular networks, utilising technologies such as 3G, 4G and 5G. These networks enable wireless data transmission to smartphones and tablets, offering flexibility and mobility.

Broadband operators provide broadband internet via fixed-line connections like cables or fibre optics, ensuring stable and high-speed connectivity with greater bandwidth and reliability compared to mobile networks.

But now, mobile network operators will be able to offer similar services. Customers will just require an outdoor antenna for signal reception, an indoor modem or router, and a subscription plan from the operator.

"It is a good initiative to expand internet access. It will help realise the government's Smart Bangladesh vision as internet is the most important tool for it," said TIM Nurul Kabir, a telecom expert.

There are about 13.13 crore internet subscribers in Bangladesh, of which 11.84 crore are mobile internet subscribers. The rest 1.28 crore are broadband users, according to data of the Bangladesh Telecommunication Regulatory Commission (BTRC).

Shahed Alam, chief corporate and regulatory officer of Robi Axiata Ltd, welcomed the move.

However, he said, considering the complexities in the fibre ecosystem in Bangladesh, there are certain challenges that need to be addressed for providing such services.

"We also need to keep in mind that access to fibre and dense network sites is a precondition for a wider 5G FWA service. We are hopeful of introducing FWA services after resolving the complexities."

Hossain Sadat, a senior director at Grameenphone, said they appreciate the time-befitting initiative of the BTRC.

"We are currently assessing the guidelines and will determine our next course of action upon receiving the formal licence."

However, broadband service providers are alarmed by the new move, fearing a potential downturn in their business in the future.

Md Emdadul Hoque, president of the Internet Service Provider Association of Bangladesh, said thousands of young people are employed by broadband internet businesses.

"The government should protect these small entrepreneurs," he said, urging the government to backtrack from the decision.

Currently, there are more than 3,000 ISPs in Bangladesh.

Abu Saeed Khan, a senior policy fellow at LIRNEasia, a Colombo-based think-tank, said FWA is a universal tool for 5G and an integral part of it.

"It is the only way to achieve mass penetration of broadband across the country."

He thinks ISPs should be allowed to provide various digital services, including video-streaming, and the government must not dictate their prices.

Besides, ISPs and mobile operators should be permitted to purchase wholesale internet, eliminating barriers created by International Internet Gateway (IIG) and Nationwide Telecommunication Transmission Network (NTTN) services, Khan added.

In Bangladesh, IIG manages international internet connectivity while NTTNs facilitate nationwide fibre optic infrastructure.

An official of the BTRC said the regulator allowed mobile operators to launch the FWA service, keeping the future rollout of 5G in mind.

FWA services have gained traction in neighbouring countries in recent times.

In September last year, Reliance Jio launched its FWA device -- Jio AirFiber -- across eight cities in India, according to the Economic Times.

The move came just over a month after rival Bharti Airtel introduced its own device in two cities as both companies are making their initial attempts at monetising 5G services.

5G is developing rapidly worldwide, with more than 260 networks and more than 1.2 billion users.

5G FWA has become a mainstream service for half of 5G operators and amassed more than 10 million users, said Mobile World Live, the official news portal of GSMA, quoting Huawei Vice-President Yang Tao in September.
​

 

[Saif]

Burnt with high tax, mobile operators become unable to pay good dividends: Robi chief

Telecommunication industry is highly capital intensive, on top of which huge tax burden remains a barrier to ensuring a good return to shareholders, said the head of Robi Axiata. In an interview with The FE, Robi Chief Executive Officer Rajeev Sethi said mobile network operators were required to i

thefinancialexpress.com.bd

Burnt with high tax, mobile operators become unable to pay good dividends: Robi chief​

ISMAIL HOSSAIN

Published :​

Feb 27, 2024 09:52

Updated :​

Feb 27, 2024 09:52

​

Robi CEO Rajeev Sethi in an interview with The FE — FE Photo

Telecommunication industry is highly capital intensive, on top of which huge tax burden remains a barrier to ensuring a good return to shareholders, said the head of Robi Axiata.


In an interview with The FE, Robi Chief Executive Officer Rajeev Sethi said mobile network operators were required to increase investment every year from the previous year to stay competitive in the market.

"To take care of that capital expenditure, and to provide a decent return to the shareholders, we are not where we should be.

"You'd be surprised to know that for every Taka a customer pays, roughly around 55 -56 per cent goes to the government."

Against this backdrop, the smaller a player is in the industry the greater negative impact it endures.

Mr Sethi, who has been leading Robi since 2022, earlier worked as managing director and CEO of Grameenphone in Bangladesh. He has extensive experience working in the telecom sector in India and Myanmar.

He said Robi was confident about future profitability, which was why it had decided to pay investors more in cash dividends for 2023 than the profit it earned in the year.

The operator expects a significant profit growth over the span of next three to four years, added Mr Sethi.

Robi recorded an annual profit growth of 74.3 per cent year-on-year to reach earnings of Tk 0.61 per share or Tk 3.21 billion in 2023.

The telecom operator recommended 10 per cent cash dividends on its face value of Tk 10 per share for the year, exceeding what it paid -- 7 per cent-- for 2022. It provided 5 per cent cash dividends for 2021.

"Our dividend policy says that we should be giving an increased return as we move forward."

Bangladesh is a "pretty interesting place" to do business for telecom service providers for its geographical location, population density, and the size of young population, said the Robi chief.

Three private and one state-owned operators are good to create healthy market competition and for profitability and sustainability.

"If you have too many players, then nobody makes enough money to be able to invest in the networks and whatever is required to offer quality services to customers."

Mr Sethi said the regulator had been playing its due role but there needed some reforms.

According to him, the telecom industry is too fragmented; it has been broken down into small components to be navigated by different players.

"We need to have not only very good radio equipment at the tower, but also the ability to carry the traffic back to our data centres, but the link is missing."

The dependency on the third party impacts quality, lamented Mr Sethi.

According to him, telecom operators should be allowed to build infrastructure, especially of optical fiber to offer quality services.

Mobile network operators used to build their own network of optical fiber before Nationwide Telecommunications Transmission Network (NTTN) came into being around 15 years back.

The Bangladesh Telecommunication Regulatory Commission issued licences for developing, building, operating, and maintaining optical fiber network all over the country, known as NTTN, to prevent duplication of network, reduce wastage of national resources, and establish a common and affordable national telecommunication infrastructure for operators, according to NTTN licensing guidelines. Currently, there are three NTTN operators -- Summit Communications Limited, Fiber @ Home Ltd, and Bahon Limited.

Mr Sethi also spoke of SMP (significant market player) restrictions, which, according to him, have not been enforced fully.

"It's not about a player A or a B or a C, this [putting restrictions] is the right thing to do for the industry because this industry will require multiple strong players."

If the operators are unable to compete, then mobile network users will be the sufferers. That will ultimately come in the way of fulfilling the dream of smart Bangladesh.

"So, we have to look at the SMP regulations in that light."

Regarding complaints about service quality, Mr Sethi said telecommunication services are better in Bangladesh than in the neighbouring country India.

On deployment of 5G network, the Robi chief said he did not see the necessity of the network standards to be elevated to that level yet.

He said 5G network should be put in place "once the traditional 4G spectrum has been completely utilized and there's a demand beyond that".

"For a developing country like Bangladesh, we cannot waste any resources," said Mr Sethi, adding that Robi's $100 million investment in 5G network was a wrong move.

About subsidiary companies formed under Robi, he said it was permissible. "We'll create more value for customers."​

 

[Saif]

https://www.thedailystar.net/tech-startup/news/symphony-leads-xiaomi-slips-study-outlines-market-share-smartphones-bangladesh-3554931

Symphony leads, Xiaomi slips: Study outlines market share of smartphones in Bangladesh​

2023 witnessed a decline in the demand for 5G smartphones, with their share in total shipments dropping to 2% from 10% in 2022.

The Bangladesh smartphone market witnessed notable changes in its competitive landscape from 2022 to 2023, as detailed by a recent Counterpoint study. The year 2023 saw changes in consumer preferences and market shifts that significantly impacted brand standings.

Xiaomi observed a decrease in market share from 17.5% to 11.3%. Conversely, itel's market share ascended from 6.2% to 11.8%. Infinix and Tecno, both enjoyed growth in their market shares, with Infinix moving from 9.3% to 13.3% and Tecno from 5.9% to 15.8%.

According to Counterpoint, Vivo also saw an increase in market share from 11.4% to 16.1%, solidifying its market presence. The collective share of smaller brands categorised as 'Others' diminished from 49.7% to 31.6%, indicating a market consolidation favouring leading brands. Symphony maintained its leadership in the handset market with an 18% share, outlines the study.

2023 witnessed a decline in the demand for 5G smartphones, with their share in total shipments dropping to 2% from 10% in 2022, as 5G has not yet become a compelling feature for the majority of consumers. Despite this, Vivo led Bangladesh's 5G smartphone shipments for the second consecutive year, followed by Realme and Xiaomi.

The overall mobile handset market in Bangladesh declined by 25% year-on-year in 2023. The feature phone market also saw a 24% decline due to an accelerated transition to smartphones. Despite a flat smartphone share in overall handset shipments, Symphony continued to dominate the feature phone segment with a 39% share.

The study further details that consumer demand for smartphones was initially weak in 2023, attributed to higher inflation rates and currency depreciation. This resulted in the lowest quarterly shipments in the first quarter of 2023 in the past three years. Market consolidation occurred with the exit of over 10 brands, elevating the top five brands' share to 68% from 63% in 2022. These brands concentrated on the entry and affordable segments, responding to the predominant consumer demand.​

 

[Saif]

Number of mobile internet connections keeps dropping

The number of active mobile internet connections in the country decreased further by 0.21 lakh to 11.63 crore in January 2024 compared...

www.newagebd.net

Number of mobile internet connections keeps dropping​

Taufiq Hossain Mobin | Published: 23:00, Mar 01,2024

A file photo shows a man using internet on his mobile phone in the capital Dhaka. — New Age photo

The number of active mobile internet connections in the country decreased further by 0.21 lakh to 11.63 crore in January 2024 compared with that of 11.84 crore in December 2023, according to the latest data published by the Bangladesh Telecommunication Regulatory Commission.

The number of active mobile internet connections has gradually decreased from August 2023 to January 2024.

The number of active mobile users in the country was 11.97 crore in August 2023, which also gradually declined, reaching 11.63 crore by January this year.

According to the BTRC data, the number of broadband internet connections remained the same in January compared with that in the previous month.

The number of broadband connections is currently standing at 1.28 crore, after increasing by 0.04 crore in December last year. Before December, the broadband connections maintained a steady figure of 1.24 crore from September to November 2023.

According to the BTRC data, the number of active mobile connections in the country decreased by 4 lakh in January compared with that in the previous month.

At present, the number of active mobile connections in the country is 19.04 crore, whereas in December the figure was 19.08 crore. According to the BTRC data, Grameenphone and Teletalk saw increase in their connections in January, while Robi and Banglalink lost its customers.

In January, Robi Axiata lost a total of 4 lakh active mobile connections, reaching 5.82 crore from 5.86 crore in December.

Banglalink also experienced a slight fall, losing 40,000 of its active connections, bringing the number down to 4.34 crore in January.

Grameenphone recorded a slight rise, according to the BTRC data, by gaining 70,000 connections in January.

The state-owned telecom operator Teletalk also experienced a slight growth with its active connections rising to 64.8 lakh in January compared with that of 64.6 lakh in December 2023.​

 

[Saif]

Grameenphone falls 9% in early trade as floor vanishes

Shares of Grameenphone declined around 9 percent within one hour of trade after the regulator lifted price restrictions on Bangladesh’s largest mobile telecom operator

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Grameenphone falls 9% in early trade as floor vanishes​

Shares of Grameenphone declined around 9 percent within one hour of trade after the regulator lifted price restrictions on Bangladesh's largest mobile telecom operator.

Grameenphone fell 8.73 percent to Tk 261 on the Dhaka Stock Exchange (DSE) until 11 am today. The turnover of the stock was Tk 18 crore.​

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Grameenphone is the latest listed company to see the floor prices go.

The Bangladesh Securities and Exchange Commission introduced floor prices in mid-2022 to curb market swings. It lifted the price restrictions over the last several months amid criticism and a lack of dynamism in the market.

It kept the floor prices on shares of Grameenphone, the most valued company in the stock market, along with some other securities.

The BSEC removed the floor price on Grameenphone after the record date which was on February 29.

Until 11.40 am, DSEX, the benchmark index at the DSE, lost 20.42 points or 0.32 percent.​

 

[Saif]

Mobile operators seek tax relief to boost digitisation

Representatives of the Association of Mobile Telecom Operators of Bangladesh (AMTOB) met with the National Board of Revenue (NBR) on Tuesday to discuss tax policies impacting the telecommunications sector. AMTOB presented 21 proposals aimed at reducing the tax burden on mobile operators, arguing t

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Mobile operators seek tax relief to boost digitisation​

UNB

Published :​

Mar 05, 2024 20:09

Updated :​

Mar 05, 2024 20:09

Representatives of the Association of Mobile Telecom Operators of Bangladesh (AMTOB) met with the National Board of Revenue (NBR) on Tuesday to discuss tax policies impacting the telecommunications sector.

AMTOB presented 21 proposals aimed at reducing the tax burden on mobile operators, arguing that the current structure hinders the industry’s growth and, consequently, the country’s digitisation efforts.

“The mobile industry is the backbone of internet access in Bangladesh,” stated AMTOB Secretary General Lt Col (retd) Mohammad Zulfikar.

“The entire digitisation process relies heavily on its infrastructure. Every sector, from banking and e-commerce to education and healthcare, utilises mobile services.”

AMTOB highlighted several concerns, including:

Double Taxation: AMTOB seeks to eliminate situations where companies face double taxation due to missing paperwork from suppliers.

Tax Exemptions for Government Organisations: AMTOB proposes clarifying tax return filing requirements for government entities like Bangladesh Railway and the Election Commission.

Corporate Tax Rates: AMTOB argues that the current 40–45 per cent corporate tax rate for mobile operators is significantly higher than the 20-27.5 per cent rate for other companies. They propose bringing mobile operators under the standard tax structure.

Minimum Tax Adjustments: AMTOB suggests allowing mobile operators to adjust any unutilised minimum tax towards future tax liabilities.

VAT on SIM Cards: AMTOB proposes removing the 200 Tk VAT charged on all SIM deliveries, including e-SIMs.

VAT on Government Regulatory Organisations: AMTOB seeks clarification on VAT applicability for government regulatory bodies.

Harmonised HS Coding: AMTOB recommends consistent application of the HS coding system for telecom equipment and software to streamline import procedures.

AMTOB believes these changes will foster a more supportive environment for the mobile industry, leading to increased investment, improved network infrastructure, and ultimately, accelerated national digitization. The NBR is expected to review the proposals and respond in due course.​

 

[Saif]

GP, Robi, Teletalk receive unified licences

The annual fee for the licence was Tk 10 crore with a 15-year validity

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GP, Robi, Teletalk receive unified licences​

The annual fee for the licence was Tk 10 crore with a 15-year validity

Telecom operators Grameenphone, Robi, and Teletalk today received unified licences, which will enable them to provide all sorts of services and streamline operations.

These licences combined previous ones for 2G, 3G, and 4G, while incorporating provisions for 5G and future services.

The annual fee for the licence was set at Tk 10 crore. It will remain valid for 15 years.

The licences -- titled "Cellular Mobile Services Operator Licence" and "Radio Communications Apparatus Licence for Cellular Mobile Services" -- were handed over at an event organised by the Bangladesh Telecommunication Regulatory Commission (BTRC) at its office today.

Zunaid Ahmed Palak, state minister for telecom and ICT, handed over the licences.

BTRC Chairman Md Mohiuddin Ahmed and other senior officials were present at the event.

"We are delighted to receive the unified licence. We appreciate our regulator, BTRC, for the timely initiative of introducing a unified licencing regime. Bangladesh will enter an era of technology neutral services," Shahed Alam, chief corporate and regulatory officer of Robi Axiata Ltd, said.

"We wholeheartedly welcome this timely initiative and express our deepest gratitude to regulators, government bodies, and policymakers for their visionary efforts," Grameenphone CEO Yasir Azman said.

"Grameenphone receiving the unified licences marks the beginning of a transformative era, empowering Bangladesh's digital transformation and catalysing progress. It paves the way for us to contribute significantly to the realisation of the Smart Bangladesh vision, leveraging technology to drive economic growth and social development."

Looking at a future dominated by smart devices, AI and connected technologies, we will be able to create an ecosystem which will serve to make our customers' lives safer, healthier, and happier, he added.

The third largest operator, Banglalink, said it would also apply for the licences.

"We welcome the initiative of combining all the licences and issuing a unified licence. It's a timely step," said Taimur Rahman, chief corporate and regulatory affairs officer of Banglalink.

"However, being part of our parent company, VEON, which is a NASDAQ and Euronext listed company, we need to fulfill certain corporate governance requirements before acquiring this renewed licence. Once that is done, we shall apply," he added.

The awarding of the licence came nearly two years after the 5G spectrum auction. In March 2022, the country's four mobile phone operators bought 190 megahertz (MHz) spectrum for $1.23 billion to roll out 5G wireless communication.

Carriers now have to roll out the technology within a year.

BTRC Chairman Ahmed said since the spectrum had already been allocated, this unified licencing would not complicate the provision for new services, including 5G.

He urged mobile operators to implement all the services under the unified licence as soon as possible.​

 

[Saif]

Some Teletalk customers to get access to Banglalink network from today

Some customers of Teletalk will be able to use Banglalink’s network from today as part of a ‘pre-commercial launch’ of national roaming services, bringing relief to subscribers of the state-run operator whose network is hamstrung by weak power backup.

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Some Teletalk customers to get access to Banglalink network from today​

Some customers of Teletalk will be able to use Banglalink's network from today as part of a 'pre-commercial launch' of national roaming services, bringing relief to subscribers of the state-run operator whose network is hamstrung by weak power backup.

This comes after the successful trial of national roaming services by Teletalk and Banglalink.

However, this pre-commercial launch will only be offered to select Teletalk customers, who can avail roaming service from Banglalink's network. Banglalink's customers will not get access to use Teletalk's network during this period.

Interconnection costs and network-related expenses will be covered by respective operators.

After the successful trial of national roaming services by Teletalk and Banglalink, both operators are finalising commercial agreements for a nationwide commercial launch, according to Banglalink officials.

The commercial launch of the national roaming service with agreed-upon terms will take a few months, according to sources.

During the pre-commercial launch, Banglalink will not generate revenue from designated Teletalk subscribers that use its network.

Teletalk will provide the subscriber list for national roaming services, with select subscribers getting access to voice, SMS, and internet services.

Teletalk customers will be charged by Teletalk as per their charging mechanism and they will be able to use roaming services as long as they have available balance on their account.

Erik Aas, Banglalink's CEO, earlier said Banglalink was proud to partner with Teletalk in pioneering the initiative to share telecommunication infrastructure.

"This initiative, a first of its kind in Bangladesh, reflects our commitment to the realisation of the government's vision for a Smart Bangladesh."

"When launched commercially, this will offer customers of both operators a seamless, high-quality network experience nationwide. The successful implementation of this field trial will not only enhance our services but also pave the way for future cross-industry partnerships and opportunities."

There are 5,661 base transceiver stations that facilitate access to Teletalk's network. However, of the 3,856 towers run on batteries supplied by Teletalk, 21.52 percent cannot provide more than one minute of backup.

This means customers who are under the coverage of these 830 towers cannot access the network if there is a power outage.

Similarly, about 40 percent of Teletalk's towers can no longer provide network access if electricity outages persist for more than an hour.

Recently, Banglalink doubled its network coverage, increasing its total number of towers to over 16,000.

Meanwhile, Robi Axiata has already received approval from the BTRC to run a trial for the roaming service.

An official of Robi said they had already completed preparations for the trial and were awaiting Teletalk's response before starting the trial.​

 

[Saif]

Govt drafts fresh telecom act

The new act will replace the Bangladesh Telecommunication Act, 2001.

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Govt drafts fresh telecom act​

Social media, online platforms to be brought under purview of the new law

The government has formulated the draft of a fresh telecommunications act, which would bring social media platforms, online platforms, and all internet protocol-based services under the purview of the law.

The draft of the Bangladesh Telecommunication Act, 2024, has already been shared for consultation with some entities, including the Bangladesh Telecommunication Regulatory Commission (BTRC), AMTOB (Association of Mobile Telecom Operators of Bangladesh), and Internet Service Provider Association of Bangladesh (ISPAB).

The new act will replace the Bangladesh Telecommunication Act, 2001, which was amended twice -- in 2006 and 2010.

Experts warned that bringing online-based platforms under the law would create complexities, bar new companies from growing, and obstruct innovation.

Fahim Mashroor, former president of the Bangladesh Association of Software and Information Services (BASIS), said nearly all activities and businesses operate through online platforms in today's digital landscape. This includes financial services, education, transportation, and even healthcare.

"Therefore, it's neither practical nor desirable to subject these sectors to the telecom act. Instead, they should be regulated by laws specifically tailored to their respective industries," he added.

The law also introduced punishment for the violation of the act or any regulation under the act through mobile courts in the presence of an inspector of the commission.

In its feedback, AMTOB said this provision should be removed. Considering the depth of telecom service sophistication and technicalities, applying mobile court modality of instant assessment and subsequent application is not feasible or justified, it said.

"It is just an initial draft. There will be thorough stakeholder conversations and seeking of public opinion before finalising the law," Zunaid Ahmed Palak, state minister for telecom and ICT, told The Daily Star.

"The aim of this law is to foster the application of modern technology, facilitate business opportunities, attract investment, and generate employment."

In the original telecom law enacted in 2001, a fine of Tk 10 lakh or maximum imprisonment of 10 years was set if anyone without a licence established or operated a telecommunication system in Bangladesh or outside or undertook any construction work of such systems or any construction work for providing internet services or installed or operated any apparatus for such services.

The government increased the fine for such offences to Tk 300 crore in 2010 in an amendment to the law.

The new draft also includes a Tk 300 crore fine for such violations.

Broadband internet service providers, most of them small and medium-sized businesses, demanded a different punishment.

"This punishment should not be meant for broadband service providers, whose revenues are meagre compared to those of mobile operators," Md Emdadul Hoque, president of ISPAB, said.

"The revenue of some of our village-level internet services providers could be just Tk 10 lakh. So, it's not reasonable to keep a provision that could fine them Tk 300 crore for a violation," he added.

He said the law ignored the broadband sector, including their long-standing demand for active sharing of last-mile fibre and infrastructure, adding that telecom and broadband law should be separate ones.

The AMTOB also requested the inclusion of additional provisions related to merger, demerger, acquisition, and amalgamation. It also demanded the incorporation of the Arbitration Act 2001 to resolve disputes between the BTRC and licensees.

The draft of the new law introduced a regulatory sandbox aimed at fostering innovation and technological advancement.

The commission is authorised to establish one or more regulatory sandboxes, following specified procedures and for designated durations, with the aim of promoting and streamlining innovation and technological progress within the telecommunications sector.

The law defines a sandbox as a controlled testing environment wherein new products, services, processes, and business models can be introduced without being fully subjected to the provisions of the act.

This testing occurs for a defined period and with a set number of users, with certain conditions being relaxed to facilitate experimentation and development.​

 

[Saif]

Implement mechanism to identify illegal handsets

Mobile phone makers also demand stability in tax policy

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Implement mechanism to identify illegal handsets​

Mobile phone makers also demand stability in tax policy

Local mobile manufacturers yesterday demanded the activation of the National Equipment Identity Register (NEIR) as illegal and informal channels currently capture about 35 to 40 percent of the overall handset market in Bangladesh.

Introduced by the Bangladesh Telecommunication Regulatory Commission in 2021, NEIR aims to ensure the use of legitimate mobile devices in the country by linking their IMEI number to the customer's national identification and SIM numbers.​

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But the crucial functions of the system, such as blocking fake, unauthorised, or cloned handsets, are not yet operational. The government has also not initiated the blocking of illegally-imported mobile phones.

The import duty on complete handsets is around 58 percent, but illegally imported phones are flooding the market as they are brought over without paying any taxes.

However, local manufacturers have to pay many different forms of taxes from eight percent to over 20 percent and various licensing fees.

As a result, newly-established factories are having a hard time despite investing crores of taka, said Jakaria Shahid, president of the Mobile Phone Industry Owners' Association of Bangladesh (MIOB).

He was speaking at a press conference organised by the MIOB.

Shahid said they have long demanded the activation of NEIR and that Zunaid Ahmed Palak, Minister of State for Posts, Telecommunications and Information Technology, had informed them that that NEIR would be activated.

"However, we haven't seen any effort to activate it yet," he said.

He added that prior to 2018, all mobile handsets in Bangladesh were imported.

But as the government provided incentives, major importers gradually established local factories. So far 17 mobile handset factories have been established and 99% of the local demand for handsets is met through official channels.

But due to a spike in illegal imports of handsets, local mobile factories are facing serious challenges, he added.

"It is very difficult to compete with illegally imported handsets because they evade taxes. There are many regulations and high licence fees imposed by BTRC on legal factories. Illegal importers are not subject to these. And the government is losing huge sums of tax in the absence of NEIR."

Customers are buying low-quality and sometimes refurbished handsets that do not offer any warranty while many crimes are also committed with illegally-imported handsets, he said, adding that one of the major objectives of NEIR is to help law enforcment combat such crimes.

The demands of the association come at a time when

The local production of handsets dropped in 2023, the first decline since domestic manufacturing began in Bangladesh in 2017, owing to the higher price of US dollars, an increase in taxes, the expansion of the grey market, and lower sales amid an erosion of consumers' purchasing power.

Domestic firms produced 2.33 crore mobile phones in the January-December period last year, down 26.35 percent from the 3.17 crore units manufactured in the same period a year earlier, according to the BTRC.

Industry people say external and internal crises have combined to hurt the local mobile manufacturing industry. Besides, the restriction in opening letters of credit (LCs) has impacted the entire supply chain.

Shahid also demanded a long-term taxation policy so that they could invest with confidence.

Rezwanul Hoque, vice-president, Md Mesbah Uddin, general secretary, and Md Zohorul Haque Biplob, joint secretary, were also present.​

 

[Saif]

Mobile operators call for restructuring taxation

Telecom operators and experts in Bangladesh yesterday demanded restructuring taxation in the sector, arguing that the rates in place are not only limiting the sector’s growth, but also potentially hindering the implementation of “Smart Bangladesh”.

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Mobile operators call for restructuring taxation

Existing taxes in the telecom sector are limiting the sector's growth, hindering the implementation of a "Smart Bangladesh", experts say. Photo: Star/File

Telecom operators and experts in Bangladesh yesterday demanded restructuring taxation in the sector, arguing that the rates in place are not only limiting the sector's growth, but also potentially hindering the implementation of "Smart Bangladesh".

As such, they demanded lowering the corporate tax rate for listed and non-listed companies in the sector to 20 percent and 27.5 percent from 40 percent and 45 percent respectively.

Additionally, they urged for reducing the minimum turnover tax. At present, mobile network operators in the country face a minimum turnover tax of 2 per cent while other industries pay only 0.6 per cent.

Lt Col (retd) Mohammad Zulfikar, secretary general of The Association of Mobile Telecom Operators in Bangladesh (AMTOB), said a significant portion of the revenue collected from customers is allocated towards subscriber taxes and other duties.

He was speaking at a roundtable, styled "Telecom Taxation for Smart Bangladesh", jointly organised by AMTOB and the Telecom and Technology Reporters' Network Bangladesh (TRNB) at Pan Pacific Sonargaon Dhaka.

Out of every Tk 100 collected from a subscriber, telecom operators have to pay Tk 39 to the National Board of Revenue as value added tax, supplementary duty, SIM tax, customs duty, corporate taxes, etc.

Zulfikar also highlighted the challenges posed by revenue sharing, which is roughly Tk 18 out of every Tk 100, with ecosystem players such as the International Internet Gateway, International Gateway, tower companies, and so on.

Besides, another Tk 15 from every Tk 100 has to be paid for annual license fees, annual spectrum fees, and revenue sharing with Bangladesh Telecommunication Regulatory Commission (BTRC).

Operational expenses further strain financial resources, with Tk 26 of every Tk 100 collected being allocated for covering costs related to network operations, marketing, administration, human resources, depreciation and finance.

As such, only Tk 2 is left for the operator out of each Tk 100 collected from customers.

Such taxation and fee structures hinder their ability to invest in network expansion, technology upgrades and service innovation, which are essential for meeting the growing demands of consumers and the digital economy, Zulfikar said.

The telecom sector's contribution to government revenue is 5 percent, making the tax regime of the local telecom industry the most imbalanced compared to that of other countries, he added.

TIM Nurul Kabir, a telecom expert, said foreign investment in the sector is declining due to high taxation.

Questioning why the same taxation system is applied for both cigarette and telecommunication companies, he said while cigarettes negatively impact health and inflate healthcare costs, the telecom industry drives GDP growth.

He suggested that removing value added taxes on internet services could be a significant milestone for Bangladesh's development over the next three to five years.

Zunaid Ahmed Palak, the state minister for telecom and ICT, said the National Board of Revenue should be modernised to enable the telecom sector to contribute more to the country's GDP.

"Without an intelligent taxation policy, the desired growth of the telecom sector will be hindered. The telecom sector should evolve into a smart industry," he added.

Md Mohiuddin Ahmed, chairman of the BTRC, said the entire ecosystem of telecom industry should be made simpler to expedite the country's journey towards "Smart Bangladesh".

So, reviewing the taxes on telecom operators is a must, he added.

Yasir Azman, chief executive officer of Grameenphone, said telecom operators would be better positioned to contribute to the development of "Smart Bangladesh" if their tax burden is alleviated.

And in the long run, this would enable the government to collect more taxes as well, he added.

Taimur Rahman, chief corporate and regulatory affairs officer at Banglalink; Shahed Alam, chief corporate and regulatory officer at Robi Axiata; Rashed Mehedi, president of the TRNB; and Masuduzzaman Robin, general secretary, also spoke.​

 

[Saif]

Getting the price right for telecom consumers

In a price-sensitive market like Bangladesh, the price of telecom services quite often makes the headlines

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Getting the price right for telecom consumers

Illustration: Syeda Afrin Tarannum

In a price-sensitive market like Bangladesh, the price of telecom services quite often makes the headlines. Many feel that the price is too high for low-income customers to enjoy mobile connectivity and a decent digital lifestyle. Customers in particular complain about the price of internet packages. The price of telecom services in neighbouring countries are also brought up to emphasise the scale of our problem. These complaints, despite being leveled repeatedly, seldom trigger a deep dive into the cost structure of telecommunication companies (or telcos) to see how much it actually costs to run such a company in Bangladesh.

Imagine that an investor has Tk 100 to invest and has few investment options. Like any sensible investor, the incentive will be to find the option that provides the maximum return. Shareholders of mobile companies are no different. They decide on how much to invest depending on how much return these businesses can generate for them.

In Bangladesh, if a telecommunications operator receives Tk 100 recharge amount from a customer, Tk 24.95 is contributed to the government exchequer (in the form of VAT, supplementary duty, and surcharge) which leaves them with Tk 75.05 as gross revenue. Of this, Tk 4.88 is paid to the BTRC as 6.5 percent revenue sharing payment. Then, Tk 37.52, or around 50 percent of the gross revenue, is spent as operating cost. After adding up BTRC revenue sharing payments and the operating cost and then subtracting it from the gross revenue, the operator is left with Tk 32.65 as EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation).

A telco has to further account for depreciation and amortisation worth Tk 21.46 (depending on legacy payments as well as the latest investment commitments), Tk 5.64 on account of interest, foreign exchange, or other costs (subject to the nature of the capital structure), and Tk 3.48 for tax payment on the basis of two percent minimum turnover tax or 40-45 percent corporate tax, whichever is higher.

The summary of these calculations is that the investor is left with a very slim profit after tax of only Tk 2.07. So, would an investor be keen on investing their hard-earned Tk 100 on the telecom sector for Tk 2.07 profit, when they can earn a better profit margin elsewhere?

Examined closely, it's apparent that a significant part of the operating cost is related to government bodies (spectrum cost, license cost to BTRC, tax deducted at source for the NBR). Additionally, amortisation exposure is considerably higher in this industry compared to others, owing to the high cost of spectrum investment.

Therefore, it's evident that without more fiscal space for mobile operators, it is extremely difficult to drive the digital agenda under the Smart Bangladesh vision. In this regard, I would like to refer to the study titled "Review of mobile taxes and fees in Bangladesh" published by GSMA (a lobby organisation that represents the interests of mobile network operators worldwide) in April 2023. The report states that the tax contribution of the mobile sector in Bangladesh is significantly higher compared to similar markets in the region. This severely limits the capacity of the mobile industry to invest in the network. According to the report, in 2021, the mobile sector contributed five percent of the total government revenue while it represented only one percent of the economy.

The high tax burden on the mobile sector in Bangladesh is mainly driven by sector-specific taxes and fees, namely excise taxes (28 percent), regulatory fees (10 percent), and spectrum fees (four percent), which amount to 42 percent of the total tax and fee payments. General taxes represent the remaining 58 percent of all tax payments made by mobile operators to the government.

The mobile sector in Bangladesh is subject to the highest corporate tax rate for publicly traded and non-publicly traded companies (40 and 45 percent of profit), compared to the general corporate tax rate of 20 and 27.5 percent respectively. Furthermore, the mobile sector is also subject to the minimum turnover tax rate (two percent of gross receipts).

The combined sector-specific tax rate on mobile services in Bangladesh is one of the highest in the Asia Pacific region. After accounting for the effective VAT rate (17.25 percent), supplementary duty (15 percent) and surcharge (one percent), mobile consumers in Bangladesh bear a combined usage tax of 33.25 percent on mobile services. It's worth noting that India, Indonesia, Thailand, Singapore and the Philippines have no sector specific tax at all.

One may argue that if the government were to reduce consumer taxes for the use of mobile services, the revenue shortfall would be hard to manage. But a study jointly conducted by Earnst and Young and GSMA in 2018, titled "Reforming mobile sector taxation in Bangladesh", demonstrates that reduction of consumer taxes would generate higher government tax revenue and GDP for the country. The evidence presented in the report shows that the mobile sector in Bangladesh is subject to a significantly high and complex tax burden. These taxes constrain both the supply side and the demand side, potentially jeopardising progress toward digital transformation and inclusion.

By constraining the supply side with high taxes, we are constraining the ability of the industry to meet the price and quality of services demands of the consumers. On the other hand, by having high consumer taxation we are pushing up the price. This in turn is pricing out the unconnected (42 percent of the population, according to GSMA). In other words, by taxing the industry and the consumers heavily, we are in effect pursuing Smart Bangladesh vision through narrowband.

This taxation regime is the Achilles' heel of the telco cost structure. It's high time that a revision takes place so the industry players can get the price right for the consumers, to facilitate the goal of a Smart Bangladesh.

Sanjib K Ghosh is Executive Vice President & Head of Strategic Finance at Robi Axiata Limited.​

 

[Saif]

ADN Telecom plans to make telecom devices

ADN Telecom, a leading IT and telecommunication service provider in Bangladesh, has availed land to set up facilities and locally manufacture telecommunication devices to substitute imports, according to company officials.

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ADN Telecom plans to make telecom devices

ADN Telecom, a leading IT and telecommunication service provider in Bangladesh, has availed land to set up facilities and locally manufacture telecommunication devices to substitute imports, according to company officials.

"We are at the initial stage and have just availed the land for the factory. We have a plan to set up the facility at Bangabandhu Sheikh Mujib Hi-Tech Park in Sylhet," said Company Secretary Md Monir Hossain.

However, he said they were yet to finalise the type of telecommunication device that they would manufacture or how much investment would be required.

According to him, they would conduct a feasibility study before investing in the manufacturing of any device.

"It is tough to grab the telecom device market as consumers in Bangladesh are very careful about purchasing any such device. Besides, consumers do not rely on local products even though some companies are producing quality products," Hossain said.

"So, we will enter the market cautiously," he added.

The company signed an agreement with the park authority on Tuesday to take lease of 1.75 acres of land, according to a company disclosure on the Dhaka Stock Exchange website yesterday.

As per the disclosure, the company has been granted the lease for 40 years for developing manufacturing facilities of international standard.

The rate is US $1.50 per square metre, which amounts to US $10,642.50 for the first 10 years. Afterwards the rate will increase by a maximum of 10 percent every three years.

Shares of ADN Telecom closed at Tk 114.70 yesterday, down from Tk 115.50 on the previous day.​

 

[Saif]

Vivo V30 Lite launched in Bangladesh

Vivo has introduced the V30 Lite smartphone in Bangladesh. The device was unveiled earlier today at a lunching ceremony in the capital.

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Vivo V30 Lite launched in Bangladesh

Image: Zahidur Rabbi/Tech & Startup

Vivo has introduced the V30 Lite smartphone in Bangladesh. The device was unveiled earlier today at a lunching ceremony in the capital.

Vivo V30 Lite features a colour-changing glass back and a metallic high-gloss frame, available in Breeze Green and Crystal Black.

The smartphone includes an 80-watt flash charger that fully charges its 5000 mAh battery in 43 minutes. It supports up to 29 hours of call time or 16 hours of video playback.

Key specifications include a Super Charge Pump that aims to minimise heat during charging, a 6.67-inch AMOLED display with a 120Hz refresh rate, and a Qualcomm Snapdragon 685 processor. The phone operates on Funtouch OS 14 and has 8 GB of RAM, expandable by another 8 GB, with 256 GB of storage.

Audio features include dual stereo speakers with a 300% volume boost. The camera setup comprises a 50-megapixel main rear camera, a 2-megapixel bokeh camera, and an 8-megapixel front camera.

The V30 Lite is priced at Tk 32,999.

It is currently available for pre-booking, which includes a gift box with RIRO TWS wireless earphones and a 4-year battery replacement card. A 180-day display replacement offer is also available for early buyers.​

 

[Saif]

Ensuring quality in Bangladesh's telecom industry: a call for vigilance and transparency

Quality of Service (QoS) is a common term in the mobile industry used to describe the services experienced by customers. In the telecom industry, standard QoS parameters are regularly measured to determine the service standard and customer satisfaction. The International Telecommunication Union (IT

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Ensuring quality in Bangladesh's telecom industry: a call for vigilance and transparency
MD MUNIR HASAN
Published :
May 26, 2024 21:55
Updated :
May 26, 2024 21:55

Quality of Service (QoS) is a common term in the mobile industry used to describe the services experienced by customers. In the telecom industry, standard QoS parameters are regularly measured to determine the service standard and customer satisfaction. The International Telecommunication Union (ITU) has specified certain parameters and their values through research, establishing the minimum requirements for an acceptable level of service. Additionally, each country's local telecom regulatory authority may suggest further parameters and their threshold values. These regulatory bodies typically prepare QoS guidelines that outline the parameters and threshold values that operators must comply with in their network operations. Sometimes, these QoS requirements are also included in the license obligations of the operators.

The price of a telecom service depends on its Quality of Service (QoS). Lower QoS typically entails lower costs, indicating a correlation between service price and QoS. Consequently, comparing the prices of multiple operators is not feasible without normalizing their services to a specific standard QoS. Therefore, the QoS guideline is crucial, and the regulator must ensure its proper implementation to protect consumer interests.

One may wonder if it is possible for operators to detect unintelligible speech quality or slow internet experiences. The answer is yes, it is possible. Operators can measure service levels using various methods. Telecom equipment includes built-in measurement techniques, and operators conduct extensive road testing (drive tests) and in-building walk testing to assess QoS.

The Bangladesh Telecom Regulatory Commission (BTRC) possesses the necessary equipment and technology to conduct drive tests and walk tests, recording the QoS of mobile network operators. These QoS reports could be published regularly to inform the public about the service levels of the operators.

On the BTRC website, three such reports are found. These tests were conducted in the Rangpur, Khulna, and Barisal regions between October and November 2021.

Md. Munir Hasan is a telecom professional.

To read the rest of the news, please click on the link above.​

 

[Bilal9]

OnePlus Nord N30 SE: A no-nonsense budget phone made in Bangladesh
The first made-in-Bangladesh OnePlus device impresses in the budget category.

OnePlus Nord N30 SE. Image: Zarif Faiaz

OnePlus Nord N30 SE. Image: Zarif Faiaz

OnePlus has recently made its official entry into the Bangladeshi market, debuting with the launch of the OnePlus Nord N30 SE.

Design and display
One of the most striking aspects of the OnePlus Nord N30 SE is its design. The Nord N30 boasts a sleek and premium look, far from the typical plastic-bodied devices in this range. Available in two colors: Cyan Sparkle and Black Satin, the phone feels solid and well-built, with a thickness of 7.99mm and a weight of around 193g. It fits comfortably in the hand and is suitable for prolonged use.
The 6.72-inch FHD+ display impresses with its 2400 x 1080 resolution and a 91.4% screen-to-body ratio, delivering sharp and immersive visuals. The 90Hz refresh rate ensures smooth scrolling, addressing a common issue in lower-end Android phones. With a peak brightness of 680 nits, the screen remains clear even under bright sunlight, and the 100% DCI-P3 colour gamut enhances colour vibrancy and accuracy.

Performance
Under the hood, the OnePlus Nord N30 SE is powered by the MediaTek Dimensity 6020 5G platform. This, combined with 4GB of RAM and 128GB of internal storage, delivers solid performance for everyday tasks. Running on Oxygen OS 13.1, the interface is intuitive and user-friendly, contributing to a seamless user experience.

Camera

The camera setup, featuring a 50MP AI rear camera, a 2MP depth camera, and an 8MP front camera, is a mixed bag. While the specifications are promising, the actual performance is somewhat underwhelming.

Battery life and charging
Equipped with a 5000mAh battery, the OnePlus Nord N30 SE provides a reasonable amount of usage time. However, during our testing, we noticed that the battery drains faster than expected, particularly during intensive use. This could be a concern for heavy users.
On the bright side, the 33W SUPERVOOC fast charging is highly efficient, bringing the battery to 51% in just 30 minutes and achieving a full charge in approximately 74 minutes.

Additional features
The Nord N30 SE includes reliable biometric security features such as fingerprint unlock and face unlock, both of which work swiftly and accurately.

Verdict
The OnePlus Nord N30 SE offers impressive value for its price. For consumers seeking an affordable yet capable smartphone, the OnePlus Nord N30 SE is a commendable no-nonsense option.

Photos: Zarif Faiaz

 

[Saif]

undefined | The Financial Express

thefinancialexpress.com.bd

Telecommunication law to be reformed in time-befitting and investment-friendly manner: Palak
Published :
Jun 05, 2024 23:36
Updated :
Jun 05, 2024 23:36

The government is set to introduce a new telecom law that aligns with technological advancements and promotes a business-friendly environment while ensuring public welfare, said State Minister for Posts, Telecommunications, and Information Technology, Zunaid Ahmed Palak.

The draft, prepared by the Ministry of Posts and Telecommunications, will undergo necessary amendments before the final legislation is enacted, he said, reports UNB.

Palak revealed these updates at a seminar organised by the Telecom and Technology Reporters Network Bangladesh (TRNB) in collaboration with the Association of Mobile Telecom Operators of Bangladesh (AMTOB).

The seminar, titled "Reform of the Telecommunications Law, 2001," highlighted key changes needed in the draft law.

He emphasised the importance of the Bangladesh Telecommunication Regulatory Commission (BTRC) operating independently while aligning with the ministry. He assured that business and investment-friendly aspects of the draft law would be preserved and adjusted as necessary.

"We will remove any provisions in the draft that could cause problems for stakeholders or the general public. We can look to the ICT laws of India and Vietnam for guidance in this regard," Palak stated. "Our goal is to create a timely law that fosters a business-friendly environment conducive to building a smart Bangladesh."

He proposed removing Articles 7(3) and 26(ঙ) from the draft law, following criticisms. Article 7(3) grants the ministry the power to remove BTRC commissioners, which could hinder the commission's independent functioning. Article 26(ঙ) requires licenses from BTRC for operating social media and online platforms, complicating online businesses and innovations. Acknowledging these concerns, Palak committed to excluding these articles.

To further refine the draft, Palak formed a seven-member committee tasked with reviewing stakeholders' recommendations and providing a report within seven days. He assured that the committee's suggestions would be seriously considered.

To read the rest of the news, please click on the link above.​

 

[Saif]

5G technology remains a pie in the sky. Why

Is 5G merely a vanity, just another technology that offers nothing extraordinary? Or has it emerged as a central cog in transforming the digital space by resolving issues related to low speed and latency?

www.thedailystar.net

5G technology remains a pie in the sky. Why

Is 5G merely a vanity, just another technology that offers nothing extraordinary? Or has it emerged as a central cog in transforming the digital space by resolving issues related to low speed and latency?

Despite being launched years ago across the world, firm answers to these questions are yet to be produced. But if you look at statistics, it may surprise you.

Over 1.5 billion people – more than one in every four mobile subscribers globally – now use the fifth-generation technology standard for cellular networks, widely known as 5G.

The technology offers several advantages over previous generations, including faster data speeds, lower latency, and greater capacity to connect multiple devices simultaneously.

Its impact spans industries like healthcare, autonomous vehicles, virtual reality and many more.

Such benefits make it attractive for both consumers and businesses and its widespread adoption indicates significant impact, suggesting that 5G is more than a passing trend.

But for Bangladesh, the launch of this technology, which promises faster speeds and broader connectivity capabilities, remains a far cry.

Although the rollout of 5G was part of the ruling party's election manifesto in 2018, the technology has so far been limited to trial runs.

Globally, operators began launching 5G networks around 2019, with initial rollouts in major urban areas. By 2021-2022, 5G adoption peaked as more operators expanded coverage and consumers embraced the technology.

According to the GSMA, by 2025, 5G networks are likely to cover one-third of the world's population, which would have a profound impact on both the mobile industry and its customers.

But in Bangladesh, sluggish moves to prepare 5G guidelines, operators' reluctance and a lack of readiness are hindering the launch of the technology.

To read the rest of the news, please click on the link above.​

 

[Saif]

Mobile phone raw material import concessions extended to 2026

The current notification on concessionary import facilities for mobile phone manufacturing raw materials has been extended to 30 June 2026 from its original validity till 30 June 2024.

www.thedailystar.net

Mobile phone raw material import concessions extended to 2026

The current notification on concessionary import facilities for mobile phone manufacturing raw materials has been extended to 30 June 2026 from its original validity till 30 June 2024.

At the budget speech of fiscal year (FY) 2024-25, Finance Minister AH Mahmood Ali said, "There are a good number of mobile phone or cellular phone manufacturing/ assembling companies in the country. The components used in mobile phones are constantly changing due to technological advancements. As a result, for the sake of adding new features to phones, companies need to import new types of components. In order to meet this requirement, I propose adding some newly invented components to the existing notification and to amend the description of some existing items".

The minister also proposed to amend the existing notification to solve the complications in the assessment of customs duty.​

 

[Saif]

Green telecom network for sustainable future

BUILDING a sustainable future is not optional but, rather, a deliberate choice we have to make for a safe future. To reach these decarbonisation goals, telecom operators are trying to have a leadership position in sustainability and the use of renewable energy sources. The Green Telecom Network...

www.newagebd.net

Green telecom network for sustainable future
Rifaque Ahmed 07 July, 2024, 00:00

| CXO Today

BUILDING a sustainable future is not optional but, rather, a deliberate choice we have to make for a safe future. To reach these decarbonisation goals, telecom operators are trying to have a leadership position in sustainability and the use of renewable energy sources. The Green Telecom Network is now explored as a potential application of green solutions as the globe looks for better energy sources.

Using energy-efficient technology, smart network design, renewable energy use and environmentally-acceptable consumables are all necessary for a telecom network to be implemented. In places where they do not have a network, operators might think of sharing a nearby existing tower instead of establishing their own. The telecom industry's overall energy consumption will drop because of such an agreement that is called a corporate power purchase.

These days, the global energy consumption for telecom operators is about 2–3 per cent, making them some of the most energy-intensive businesses in respective regions. Operators' carbon footprint increases along with their energy use, harming not only the environment but also their reputation and position.

After an unprecedented consumer demand for digital communications and the rising demand for fast speed in digital communication during the Covid pandemic, telecom infrastructures are using more energy than ever. The information and communications technology industry and telecom providers have a large impact on both CO2 emissions and waste since worldwide data traffic is anticipated to expand by a significant number annually.

So, it is necessary for telecom providers to control network capacity along with aggressively adopting green ways of conducting large-scale operations. Otherwise, the energy sector will continue to contribute to climate change through emissions from electronics and waste production. They can also contaminate the soil or other ecosystems in the vicinity of production or disposal sites.

Telecom companies are exploring ways to improve the energy efficiency and sustainability of their data centre operations. This includes implementing energy-efficient technologies and practices, such as server virtualisation, data centre consolidation and an increased use of renewable energy sources like solar and wind power. Many telecom companies are also investing in advanced power management tools and technologies. Investment in artificial intelligence and machine learning is also introduced to optimise power consumption and reduce energy waste.

Eco-friendly networks are the ones that are built with low power consumption and energy efficiency in mind. The primary goal of green networks is to reduce energy consumption while increasing efficiency and optimisation. Although implementing green networks has unquestionably become morally necessary, the cost of energy now represents mostly telecom operating expenses. The need to reduce these expenses through the implementation of green mobile networks is both a social and a financial necessity.

Renewable energy-powered networks minimise the amount of carbon that is emitted during their daily operation. Typically, a tower is run on a grid and battery combination and when both sources are unavailable, diesel generators are switched on to ensure network availability. The industry's endeavour should be to make this generator redundant and run the network on green energy sources like solar, wind, hydrogen fuel cells, or enhanced battery capacities (lithium ion, lithium phosphate) for extra backup in the network building, supply and manufacturing processes. Networks should be considered for their complete supply chain.

Some of the telecom towers in Bangladesh have successfully started deploying diesel-free sites and a better grid power availability is on the rise to adhere to the quality standards laid down by the government. Energy consumption, renewable energy sources and a CO2 reduction strategy are the three vital elements that must work in tandem for a network to be considered green.

Low-powered rectifiers, Li-ion/LFP batteries and advanced solar power controllers should be deployed to address grid power interruption and fluctuation. Upcycling the setups with the implementation of energy-efficient solutions can be a great opportunity to drive change in the carbon-free emission agenda.

Network infrastructure energy efficiency is a priority for operators as the base stations represent most of the energy consumption. With a significant increase in the amount of data traffic since the launch of 5G, it presents a unique challenge of supplying reliable and clean energy to telcos and tower cos. Stabilisation of power-on-demand is critical for handling the transition from 4G to 5G, edge computing and IoT, and further related technologies.​

 

[Saif]

BTRC show-causes Robi, Banglalink for failing to improve service quality

This comes after the regulator sent a notice to GP on June 30 for “not using the allocated spectrum”, which affected the operator’s quality of service.

www.thedailystar.net

BTRC show-causes Robi, Banglalink for failing to improve service quality

The Bangladesh Telecommunication Regulatory Commission (BTRC) today issued show-cause notices to Robi Axiata and Banglalink for "failing to achieve the target to improve the quality of service" to the benchmark set by the regulator.

This comes after the regulator sent a notice to GP on June 30 for "not using the allocated spectrum", which affected the operator's quality of service.

Taimur Rahman, chief corporate and regulatory affairs officer at Banglalink, said: "Banglalink has always tried to ensure best quality of service and has actually been able to provide the fastest mobile internet in the country continuously for the last four years through heavy investment in network expansion and procurement of spectrum.

"We always take feedback from our customers and regulators positively and will strive to continue to provide best service for our customers."

Shahed Alam, Robi's chief corporate and regulatory officer, said: "We would humbly like to state that according to the rigorous test carried out by BTRC and our own technology team, Robi has been found to be offering better quality of service than what is expected as per the QoS regulation.

"The show-cause notice thus comes as a surprise for us. The critical point here is that the show-cause notice is made in reference to the unreasonably stringent interim QoS directive issued by the regulator.

"We believe that the existence of such an interim directive on QoS while we have a clearly defined QoS regulation for the same only creates confusion and inconsistency in the regulatory framework for ensuring QoS for our customers.

"Robi is consistently delivering on QoS requirements and shall respond to the regulator clarifying our position on the matter in due course."​

 

[Saif]

Mobile phone operators join race to capture broadband market

The country’s three private mobile network operators are racing to grab a share of the rapidly expanding broadband market by offering fixed wireless access (FWA) services, which give users Wi-Fi connections without cables.

www.thedailystar.net

Mobile phone operators join race to capture broadband market

The country's three private mobile network operators are racing to grab a share of the rapidly expanding broadband market by offering fixed wireless access (FWA) services, which give users Wi-Fi connections without cables.

After the Bangladesh Telecommunication Regulatory Commission (BTRC) allowed mobile phone operators to launch FWA services in its cellular mobile services guidelines earlier this year, Grameenphone became the first to soft-launch such products.

It rolled out a service called "gpfi unlimited" yesterday.

Banglalink introduced FWA services last week in partnership with a third-party router supplier. Robi plans to roll out a similar service later this month.

The moves are expected to spark fierce competition in the Tk 8,000 crore broadband internet market in Bangladesh.

Competition will intensify not only among operators but also between network carriers and broadband internet operators.

In Bangladesh, telecom operators provide mobile internet while internet service providers (ISPs) offer broadband services.

Generally, mobile operators deliver services through cellular networks, utilising technologies such as 3G, 4G, and 5G, which enable wireless data transmission to smartphones and tablets, offering flexibility and mobility. On the other hand, broadband companies provide internet via fixed-line connections through cables or fibre optics.

In recent years, the broadband internet market in Bangladesh has expanded rapidly, with 1.34 crore subscriptions as of May, leading to the flourishing of a large number of service providers.

Now, mobile network operators will be able to offer similar services. In order to obtain the service, customers will need just an indoor modem or router and a subscription plan.

However, according to industry insiders, ensuring stable and high-speed connectivity with greater bandwidth and reliability compared to wired broadband will be difficult for operators.

Mohammad Sarwar Alam, assistant professor at the University of Chittagong, has been using 'gpfi' for over six months.

He identified the pros and cons of the service.

He said the internet speed is satisfactory, adding that he can take the router anywhere and use it wherever Grameenphone's network is available.

"However, if the user is present in a room while the router is kept in another room with the door closed, the internet speed starts to fluctuate."

Furthermore, the amount of available spectrum directly affects the capacity and speed of FWA services, posing a challenge for operators. This is because the deployment rate of higher frequency bands such as 2300 MHz and 2600 MHz, used for 4G LTE (long-term evolution), and potentially 5G technology, is low in Bangladesh.

Although the auction for these spectrum bands was held over two years ago, operators have deployed less than 20 percent of the frequencies they have purchased. These bands are crucial for FWA services as they support faster data rates and greater capacity, according to industry experts.

Grameenphone offers two types of routers: one priced at Tk 4,000, which can connect 10 devices, and another priced at Tk 7,500, which can support 32 devices.

Currently, there are three subscription plans: Tk 1,000 per month for 25 Mbps, Tk 1,300 per month for 30 Mbps, and Tk 1,900 per month for 40 Mbps.

As such, prices may be another barrier to mass usage as consumers can buy cheaper broadband packages from traditional ISPs.

Md Emdadul Hoque, president of the Internet Service Providers Association of Bangladesh, stressed that mobile operators should not be allowed to provide any such services through cables.

Taimur Rahman, chief corporate and regulatory affairs officer of Banglalink, said: "Over the past 24 months, we have invested heavily in doubling our nationwide network coverage and enhancing our customers' digital experience by acquiring additional spectrum.

It now offers fixed wireless services through routers, including the Banglalink MiFi routers and fixed routers. Recently, the company partnered with TP-Link to provide high-quality speed with bundled offers.

"We believe in offering seamless, uninterrupted connectivity by combining mobile telephony and fixed wireless services, allowing customers to enjoy optimal internet speeds anytime, anywhere," Rahman said.

"We can do this, or this can be done through partnership models."

Shahed Alam, chief corporate and regulatory officer of Robi Axiata Limited, said WFA has been launched in various countries around the world to cater to the growing demands for uninterrupted high-speed internet service.

Robi had completed preparations to provide wireless broadband services using advanced technology by combining 4G and 5G technology.

"The service will be launched on a wide scale soon," he said. "We believe that this service will open a new option for customers in terms of availing high-speed internet services."

He said competition in the internet service sector will increase through this initiative, providing quality internet service for consumers.

"However, to ensure customer satisfaction, we are conducting thorough market research and gathering overall experience on service delivery variables in this regard."​

 

[Saif]

Telcos’ service falls short of BTRC standard

Mobile operators performed poorly in the telecom regulator’s latest drive test to assess service quality, reinforcing users’ claims of experiencing substandard service.

www.thedailystar.net

Telcos’ service falls short of BTRC standard
Shows drive test result with state-of-art system

Mobile operators performed poorly in the telecom regulator's latest drive test to assess service quality, reinforcing users' claims of experiencing substandard service.

The drive tests were conducted between February 14 and June 5 across Dhaka city corporations, Narayanganj, Keraniganj and Savar upazilas with the Bangladesh Telecommunication Regulatory Commission's newly acquired system from Germany that was purchased for 1.5 million euros.

Maintaining the quality of service (QoS) is a fundamental requirement enshrined in telecommunications licences, said Abu Nazam M Tanveer Hossain, a telecom sector expert.

"Since 2011, licensees have negotiated these standards through consultation and negotiation and the recent report, if accurate, highlights a significant failure to uphold the commitments made upon accepting these licences," he said.

Robi, which has 5.8 crore customers as of August, performed the best, failing in only five key performance indicators (KPIs) out of 40 across four areas.

Market leader Grameenphone, which has 8.5 crore subscribers, failed in six KPIs, Banglalink in 14 and Teletalk in a staggering 26, shows the test results.

For internet services, only the state-owned Teletalk failed to meet the BTRC's benchmarks, with Robi faring the best.

In Dhaka city, Banglalink, which has 4.2 crore customers, fared the worst among the three private carriers: it failed to meet five of the 10 KPIs. For instance, the operator's call drop rate was above the BTRC's ceiling of 2 percent in Dhaka city: it was 2.59 percent.

Over in Keraniganj upazila, all operators' call drop rate was above the BTRC's ceiling of 2 percent for 2G voice calls, with Banglalink faring the worst (4.25 percent).

However, for 4G voice calls in the upazila, only Banglalink passed the test, with Robi faring the worst (3.98 percent).

All four operators failed to meet the BTRC's ceiling for call setup time of 7 seconds in Savar for 2G voice calls.

Banglalink and Teletalk also failed in Keraniganj, while Teletalk missed the mark in Dhaka and Narayanganj.

For call setup success ratio, which should not be less than 97 percent, all operators except Grameenphone failed in Keraniganj.

For 2G voice calls, only Robi met the call setup success ratio in Dhaka and Narayanganj.

The unsatisfactory performance comes as the operators are not fully utilising the spectrum from the higher bands assigned to them in March 2022. Conversely, the operators are relying on the lower band, which offers wider coverage with fewer base stations.

The higher band have a shorter range but more bandwidth, meaning better transmission capacity but with a higher concentration of base stations.

Banglalink, which purchased 40 MHz in the 2,300 band, has deployed the spectrum only to 7.07 percent of its sites, according to a BTRC presentation in June.

Grameenphone and Robi, both of whom bought 60 MHz in the 2,600 band, have deployed the spectrum to 11.92 percent and 17.76 percent of the sites respectively.

If the operators offload data service pressure to a higher band, the lower band spectrum is freed up to offer better 2G voice services.

However, the lack of proper spectrum usage is causing customers to experience poor signal, frequent call drops and mute calls.

Over the past decade, the BTRC has implemented measures such as infrastructure sharing and unified licensing to optimise operational costs.

Yet, the mobile operators' QoS is falling short of customer expectations.

The drive test result is a setback for operators, who often claim compliance with the BTRC benchmarks despite deteriorating service quality.

It also raises questions about their ambitions to become digital operators offering services such as payments and OTT platforms while struggling to provide core telecom services.

"The BTRC as the regulatory body should ensure satisfactory services and tariffs for the users," said Ghulam Rahman, president of the Consumers Association of Bangladesh.

Contacted, Emdad Ul Bari, who was appointed the chairman of the BTRC on September 10, said he has not seen the result of the drive test yet.

However, Bari said he sat with the chief executive officers of the telecom operators on Tuesday regarding QoS.

"We have urged them to find the way to ensure QoS, including when inside buildings," he said, adding that the BTRC will hold an industry consultation on the matter on October 10.

Robi and Banglalink said the drive test result conducted by the BTRC's newly procured tool differed from the ones derived from their own tests in several parameters.

The operators have expressed their concerns and feedback about the drive test results through the Association of Mobile Telecom Operators of Bangladesh.

The results do not depict the correct picture, said Shahed Alam, chief corporate and regulatory officer of Robi.

"We are hopeful in reaching an acceptable conclusion regarding the drive test results," Alam said, adding that Robi plans to roll out the 2,600 MHz band in 35 percent of the sites this year and will continue to deploy in more sites as per requirement and traffic forecast.

The BTRC's results do not reflect the network's performance and could cause confusion, said Taimur Rahman, chief corporate and regulatory affairs officer of Banglalink, adding that the operator is "fully utilising the 2,300 MHz band" at present.

The AMTOB, the BTRC and drive test vendors are working together on a unified methodology for calculating the KPIs as significant differences have been observed between the drive test results of the operators and the telecom regulator's, Grameenphone said in a statement.

About the low deployment of the spectrum from the 2,600 MHz band, Grameenphone said the 60 MHz of spectrum in the band was acquired to enhance capacity based on traffic and QoS demands.

The demands are determined by various ecosystem factors such as user behaviour, usage profiles, user concentration and handset penetration.

Grameenphone monitors traffic demand almost in real-time and initiates capacity expansion or new spectrum deployment as needed, the statement added.

Teletalk could not be reached for comment.​

 

[Saif]

Telecom reforms for a smarter future

The shift from “Digital Bangladesh” to “Smart Bangladesh” was like trying to drive a car without an engine — all talk, little substance. While we have made big claims on paper, the reality was far from impressive. While waving the “Digital Bangladesh” flag, we ranked 105 out of 132 in Global...

www.thedailystar.net

Telecom reforms for a smarter future

Voice floor price should be eliminated to support the shift from voice-based to data-driven communication, says an expert. Photo: Star/ File

The shift from "Digital Bangladesh" to "Smart Bangladesh" was like trying to drive a car without an engine — all talk, little substance. While we have made big claims on paper, the reality was far from impressive. While waving the "Digital Bangladesh" flag, we ranked 105 out of 132 in Global Innovation Index 2023 (Source: World Intellectual Property Organization).

For over a decade, our telecom policy had been mainly benefiting a few powerful business groups, favouring political allies over real progress. As president of the Association of Mobile Telecom Operators of Bangladesh, I had grave reservations against critical resources of mobile operators being given away to political allies by regulators. Instead of making policies to advance digital growth, the focus was more on facilitating a selected few. Many of these policies were as corrupt as the regime itself, prioritising personal profits over the country's digital future.

According to ICT Development Index (IDI) of International Telecommunication Union of the United Nations, Bangladesh ranks 62 out of 100. The average IDI score for the 170 economies is 74.8. For 91 economies, the score is above 80. That puts Bangladesh among the bottom 38 economies. Worse still, Bangladesh ranks 111 on the E-Government Development Index (United Nations Educational, Scientific and Cultural Organization), and 75 on "E-Participation Rank". Bangladesh scores below 60 percent in "Mobile Internet Subscribers" and 6.1 percent in "Fixed Internet Subscribers".

The wish of the interim government's chief adviser to reduce data prices is certainly achievable by modifying policies and eliminating political beneficiaries. It is crucial not to compromise on key principles, viz 1) no loss of government revenue, 2) attract foreign direct investment (FDI), 3) remove the influence of past beneficiaries to share that benefit with the government and other stakeholders, and 4) reset policies to regain lost momentum. Given the industry's crucial role in revenue, FDI, socio-economic progress, and transparency, any approach that reduces government revenue or FDI is unsustainable.

Unified licensing for a better future: a three-tier model

A new three-tier licensing model is proposed to address the evolving needs of the telecom industry and ensure better service delivery. This model aims to streamline services, improve quality, and align with regional best practices, and thereby potentially transforming the telecommunications landscape. The three licensing layers are as follows:

1. Access network service: This layer provides end-users access to telecom networks to meet their communication needs, including voice and data. Licensed operators such as mobile network operators (MNOs) and internet service providers (ISPs) would serve customers directly under this licence. Even mobile virtual network operators (MVNO) should be considered here.

2. Infrastructure service: This layer (nationwide telecommunication transmission network (NTTN), tower, submarine cable) would offer transmission services to MNOs, MVNOs and ISPs, ensuring the seamless flow of voice and data among customers. More will be discussed in Part 2 of this article.

3. Services and content: This layer would provide digital services beyond traditional voice and data offerings. It would encompass content providers, focusing on delivering enriched digital experiences to customers.

The above should facilitate optimising and licensing 2900+ licences in 29 categories. Licensees may be allowed to acquire multiple licences following regional best practices. Significant Market Power (SMP) should be implemented in each category for balanced growth.

Immediate reforms and long-term strategy

A swift reform could involve removing International Gateway Operators Forum (a forum of internet gateway licensees) within a month, eliminating discriminatory revenue-sharing and enabling call terminations at actual rates, benefiting all stakeholders. A more comprehensive reform, like restructuring licensing layers, would require cancelling or non-renewing licences, a complex process owing to existing conditions. Finalising the revised policy now would enable a smooth transition by 2027, fostering a more efficient and competitive telecom environment that enhances digital connectivity and consumer benefits. All these are only possible if the regulator is empowered and independent.

Scrap voice floor price

The voice floor price in Bangladesh should be eliminated to support the shift from voice-based to data-driven communication. While initially intended to help the MNOs, the floor price now hinders affordability and digital adoption. Most countries no longer charge for voice and SMS. With voice still making up 50-60 percent of the MNO revenue due to such support, the voice floor should be removed, and the MNOs should be given the same freedom as smartphone manufacturers and importers to drive data adoption.

Removing the voice floor price can drive competition, reduce communication costs, and make digital services accessible for all. Moreover, it will push everyone to focus on data consumption and penetration. The monthly data consumption in Bangladesh (5.5 GB) is one of the lowest in the region. India's Jio model proves that data & device inclusive packages can uplift both urban and rural communities without relying on voice revenue.

The government could consider introducing differentiated taxes on data and voice revenues to support this transition without losing revenue. The MNOs may strongly oppose this move, arguing that it would negatively impact low-income users. However, the reality is, such a policy threatens to leave the underprivileged trapped in the analog era, while the wealthy continue to enjoy the benefits of the digital age.

Hence, while the promises of telecom transformation sound fantastic, much of the groundwork is yet to be laid. It is time to trade the fancy slogans for real reforms, ensuring our progress is not just on paper. After all, it is always harder to glide into the future when we are held back by the past.

The author is the founder and managing director of BuildCon Consultancies Ltd​

 

[Saif]

Telecom leaders plead for independent BTRC

Industry leaders in the telecom sector have called for a truly independent Bangladesh Telecommunication Regulatory Commission (BTRC), urging that reforms should be free from political bias and favouritism. They underscored the need to curb autocratic practices in the use of technology, ensure bala

thefinancialexpress.com.bd

Telecom leaders plead for independent BTRC
Reforms crucial to rectify past missteps
FE REPORT
Published :
Oct 18, 2024 09:14
Updated :
Oct 18, 2024 09:14

Industry leaders in the telecom sector have called for a truly independent Bangladesh Telecommunication Regulatory Commission (BTRC), urging that reforms should be free from political bias and favouritism.

They underscored the need to curb autocratic practices in the use of technology, ensure balanced licensing and promote equal opportunities for all.

The demand was raised at a stakeholder meeting on the ecosystem review of the sector at the telecom regulator's headquarters at Agargaon on Thursday.

Md Roknuzzaman, an electrical and computer engineering professor at North South University, delivered a keynote speech, highlighting the need to dismantle the existing market monopoly.

BTRC chairman Maj Gen (retd) Emdad Ul Bari presided over the meeting with industry leaders and representatives of various telecom organisations in attendance.

Mr Bari acknowledged that mobile services in Bangladesh were originally launched with the goal of enhancing connectivity, rather than mobility, and that the infrastructure was primarily designed for voice-call networks.

However, introduction of data services and growing concern over VoIP usage have complicated the sector's growth, with the industry struggling to adapt.

He acknowledged the global shift towards data-driven services, describing data as the "lifeline" of modern telecom infrastructure.

"Clinging to outdated network topologies is no longer feasible," remarked Mr Bari, stressing the urgency of reform.

While state monopolies have been diminished, he noted that private monopolies have emerged, requiring regulatory interventions.

"BTRC must act as an independent commission free from political interference, especially in licensing matters," Mr Bari said, adding that reforms were needed to rectify past missteps and align the ecosystem with industry demands.

He also pointed out that many licences would expire by 2027, urging swift action to create customer-friendly infrastructure and eliminate middlemen.

Industry figures like technology expert Suman Ahmed Sabir, Robi CEO Rajib Shetty, former AMTOB president Mahtab Uddin Ahmed and Mango Telecom CEO Mannan Khan offered their perspectives.

Internet Service Providers Association of Bangladesh (ISPAB) president Emdadul Haque stated that a level-playing field was yet to be established, with fixed pricing for ISPs and IIGs but not for mobile operators.

He also pointed out obstacles in deploying CDNs in the last mile along with tax and VAT issues that prevent the reduction of internet costs at grass-roots level.

Responding to media queries after the meeting, the BTRC chief acknowledged that licences were previously granted based on favouritism, often resulting in suboptimal service.

He emphasised the need for clear and dependable regulations, stating that BTRC's transformation from a telecommunications regulator into a digital service provider was underway.

Global tech giants like Google and Facebook will invest in Bangladesh once trust in the regulatory framework is restored, according to Mr Bari, hinting at imminent reforms involving industry, academia and regulatory experts.

Meanwhile, ex-Robi CEO Mahtab emphasised BTRC's reform, pointing out that telecom department and relevant ministries should not be involved in BTRC's decision-making processes.

"The BTRC must be empowered to make autonomous decisions without interference from other government bodies," he observed.

Mr Ahmed argued that data pricing should remain untouched, given that 60-70 per cent of telecom revenue comes from voice calls.

He sought a unified licensing system in sync with global practices and advocated that towers be managed by Towerco, with both active and passive infrastructure sharing among operators to curb market concentration.

Additionally, the telecom expert suggested utilising unused bandwidth from submarine cables and transferring control of domestic data centres from the ICT Division to the BTRC.

According to Mr Ahmed, the BTRC must prioritise long-term industry growth over merely acting as a revenue-collecting body.​

 

[Saif]

BTRC fines top three mobile operators Tk 15 lakh

The Bangladesh Telecommunication Regulatory Commission (BTRC) has decided to impose a fine of Tk 15 lakh on Grameenphone, Robi and Banglalink for breaching industry regulations.

www.thedailystar.net

BTRC fines top three mobile operators Tk 15 lakh

The Bangladesh Telecommunication Regulatory Commission (BTRC) has decided to impose a fine of Tk 15 lakh on Grameenphone, Robi and Banglalink for breaching industry regulations.

Each operator will have to pay Tk 5 lakh for sending more than three promotional SMS per day to their customers, according to BTRC documents.

In a BTRC directive on data and related packages issued last year, mobile operators were instructed to not send more than three promotional SMSs daily.

The decision to penalise Grameenphone, Robi and Banglalink follows months of contention between the BTRC and operators regarding this issue.

The BTRC argued that sending more than three promotional SMSs daily would mentally harass the customers and that the operators' violation distorts the regulator's image.

However, the operators claim that sending more than three SMSs is necessary as the delivery rate of SMS to customers is less than 70 percent due to issues with handsets, inactive SIMs and other reasons.

They also said sending more than three promotional SMSs daily is vital for them as doing so enables direct communication with customers regarding new products, services and AI-driven personalised offers.

Besides, this approach enhances service diversification, assists in product selection and fosters customer engagement by addressing individual preferences and behaviour.

The BTRC first cautioned Grameenphone in late October last year and asked for an explanation in April this year as to why the company needs to send more than three SMSs per day to customers.

The SMS delivery rate per customer averages around 68 percent due to system limitations, customer handset issues, and other factors, Grameenphone explained in response.

For churned or inactive customers, the rate can drop to as low as 30 percent. Therefore, to ensure three SMSs are received by customers, more than three SMSs need to be sent, the operator said.

The BTRC also cautioned Banglalink last year and asked for an explanation in May this year.

In its response, the operator stated that despite technical challenges, it had taken steps to limit daily promotional SMS distribution.

However, it argued that the three-SMS restriction hinders the promotion of new services and products in response to evolving communication needs and increasing customer demand.

Most of Banglalink's customers are non-smartphone 2G device users with limited access to digital promotion channels, making them cost-conscious buyers.

Therefore, Banglalink relies heavily on SMS to communicate with this segment, considering it an effective way to reach marginalised, non-smartphone users.

Banglalink argued that enforcing the three-SMS limit is discriminatory and deprives customers of suitable product offers.

Robi was cautioned in late October last year and asked for an explanation in November that year for sending more than three SMSs per day to the customers.

Robi replied that sending promotional SMS is essential for service diversification, product selection and AI-based notifications. Robi also highlighted that its SMS platform operates separately from its data and voice platforms, making it technically infeasible to restrict the number of SMS sent.

Experts have raised questions about such micro-management by the commission, especially given the availability of the Do Not Disturb (DND) service.

The mobile operators introduced the option to block promotional SMS several years ago following BTRC instructions.

Customers can activate the DND service by dialling short codes: Grameenphone (1211101#), Banglalink (1218*6#), and Robi/Airtel (*7#).

Abu Nazam M Tanveer Hossain, a telecom expert, said while strict enforcement of laws and bylaws is essential for maintaining governance and the rule of law, it is equally important that these regulations are logical, practical and add value.

"While promotional SMSs can be disruptive, consumers have the option to opt out," he added.

Therefore, regulatory focus should prioritise crucial issues like rollout obligations, quality of service and fostering competitive behaviour rather than emphasising less critical concerns like promotional messaging, Hossain said.

"The BTRC is currently revisiting the current data directive. Imposing any fine based on the previous directive has ample space for revision," said Shahed Alam, chief corporate and regulatory officer of Robi Axiata PLC.​

 

[Saif]

Overhauling of telecom industry through regulatory reform suggested

Speakers at a discussion on Saturday stressed the need for overhauling the country’s telecommunication industry through bringing regulatory reforms to achieve meaningful progress in this changed Bangladesh. They also suggested a pro-people regulatory atmosphere to outreach the benefits of in

thefinancialexpress.com.bd

Overhauling of telecom industry through regulatory reform suggested
FE Online Desk
Published :
Oct 19, 2024 15:48
Updated :
Oct 19, 2024 15:48

Speakers at a discussion on Saturday stressed the need for overhauling the country’s telecommunication industry through bringing regulatory reforms to achieve meaningful progress in this changed Bangladesh.

They also suggested a pro-people regulatory atmosphere to outreach the benefits of internet and other telecommunication-based services to the people at every nook and cranny, UNB reports.

Bangladesh Mobile Phone Consumers' Association (BMPCA) organized the discussion meeting “BTRC’s empowerment, amendment of telecommunication act and present situation” at Dhaka Reporters’ Unity.

Mahtab Uddin Ahmed, Founder and managing director of BuildCon Consultancies, in his keynote presentation, said Bangladesh’s telecom regulation is hampered by overlapping responsibilities between the Telecom Ministry, Bangladesh Telecommunication Regulatory Commission (BTRC) and Department of Telecommunications (DOT).

“This creates inefficiencies and slows down progress,” he observed, suggesting the interim government to merge BTRC with DOT.

“The interim government must streamline regulatory roles by merging DOT with BTRC, enabling BTRC to both regulate and formulate policy, while the Ministry provides overarching guidance,” he added.

Mahtab, who was the CEO of mobile phone operator Robi, opined, “Without this reform, meaningful progress in the telecom sector will remain elusive.”

Bangladesh’s telecom sector is being held back by monopolistic control, outdated policies, and regulatory inefficiencies, he said, adding, “If the country truly wants to achieve "Smart Bangladesh," it’s time to prioritize national interests, remove political cronyism, and create a competitive environment that fosters innovation, growth, and digital inclusivity for all.”

Mahtab Uddin Ahmed in the meeting placed a new three-tier licensing model to address the evolving needs of the telecom industry, which aims to streamline services, improve quality, and align Bangladesh with regional best practices.

Initially, he suggested end-user access to telecom networks for voice and data, including Mobile Network Operators (MNOs), Internet Service Providers (ISPs), and Mobile Virtual Network Operators (MVNOs).

Additionally, he opted for Infrastructure Service and this layer covers towers, fibre, and submarine cable services, offering transmission support to MNOs, ISPs, and MVNOs.

Furthermore, he advocated for services and contents, which would focuses on delivering digital services beyond traditional telecom offerings, enhancing customer experiences.

“This model would optimize Bangladesh's 2,900+ licenses across 29 categories,” added Mahtab.

Mustafa Mahmud Hussain, a telecom policy analyst, also advocated for an effective telecom regulation as well as encouraging the content creators to develop educative contents.

ISPAB President Emdadul Hoque laid emphasis on full independence of BTRC, saying if BTRC had independent characteristics, it wouldn’t have been issued licenses in political consideration.

“We wouldn’t get an appropriate policy until BTRC has the authority to issue and revoke license as well as get full monitoring access,” he said, adding that BTRC should have the authority to act as an independent commission for the better industry.

About the reassessment of different layers of licenses, the ISPAB President recommended for discussion with the stakeholders to avoid any disorder, as so many licenses have already been issued for different jobs.

BMPCA President Mohiuddin Ahmed urged the telecom regulator as well the government to bring different operators under accountability as many of those are not complying with QoS.​

 

[Saif]

Defying guidelines, NTTN operators yet to go public

Five of the six operators of Nationwide Telecommunication Transmission Network (NTTN) have not gone public despite being mandated to float shares on the stock market several years ago.

www.thedailystar.net

Defying guidelines, NTTN operators yet to go public

Representational image/Pixabay

Five of the six operators of Nationwide Telecommunication Transmission Network (NTTN) have not gone public despite being mandated to float shares on the stock market several years ago.

According to the NTTN licensing guidelines, which is primarily on laying underground optical fibres, an operator must file for an initial public offering (IPO) within five years of obtaining the licence.

Bangladesh currently has six NTTN licensees, including three state-run agencies and three private companies.

However, only the Power Grid Company of Bangladesh Ltd (PGCB) is listed on the Dhaka Stock Exchange.

None of the others, which were all awarded the licence between 10 years to 15 years ago, have floated shares to the public.

The companies are Fibre@Home Ltd, Summit Communications Ltd, Bahon Limited, Bangladesh Railway, and Bangladesh Telecommunication Company Ltd (BTCL).

Fibre@Home secured the licence in January 2009 while Summit Communications, a concern of power sector heavyweight Summit Group, received theirs in December of the same year.

Bangladesh Railway, PGCB and BTCL received the licence in 2014, according to Bangladesh Telecommunication Regulatory Commission (BTRC).

Bahon Limited received its licence in December 2019.

Moynul Haque Siddiqui, chairman of Fibre@Home Ltd, said his company planned to go public long ago.

However, the previous government's decision to change the IPO valuation method discouraged companies with good fundamentals from going public, he said.

"This is the reason behind the delay. Good companies are unwilling to come to the stock market with the current valuation method for share prices," he said, adding that they had already informed Bangladesh Investment Development Authority about the issue.

In a letter sent in May, the BTRC asked Fibre@Home to take steps to float shares.

"We expect to issue an IPO by December. We expect that policy regarding the valuation will change by this time," Siddiqui said.

Summit Communications, in an emailed response, said it had initially planned to file for an IPO, but outlined reasons it could not.

"Due to local market challenges, unforeseen global challenges, including the Covid-19 pandemic, which severely impacted both local and international financial markets, we were unable to proceed as intended," it said.

The largest infrastructure company in the telecom and internet sector in Bangladesh said it had "diligently worked towards securing the necessary no objection certificate from BTRC, but the timing was not conducive to moving forward with the listing process at that time".

Summit Communications said it remains fully committed to pursuing an IPO as soon as market conditions stabilise and become more favourable.

However, it did not provide any timeline.

"We continue to monitor the broader economic environment and aim to proceed when we are confident that the market is positioned for forward-looking stability," it said.

"Once these conditions align, we are prepared to move forward with the listing at the earliest opportunity, in line with our long-term vision for sustainable growth and maximising value creation," the company said.

BTRC Chairman Md Emdad Ul Bari said the commission had asked licensees who are obligated to go public to do so.

"We have also decided to ask them to explain the reasons behind their failures and their plans for going public," Bari, a former major general, said.

Mohammad Rezaul Karim, spokesperson of the Bangladesh Securities and Exchange Commission, said the primary regulator should enforce the rules.

"If companies do not comply, the BTRC should enforce the rule. If there is any bottleneck, we can work to address those," he said.

Karim added that a task force was working to suggest reforms for the capital market, which may include revisiting the valuation method of IPOs.

"If the panel recommends anything regarding the valuation method of IPOs, the commission will consider it," he said.

In a WhatsApp reply, the BTCL said the state company is providing comprehensive telecom services under 10 licences issued by the BTRC.

"The BTCL maintains one account against revenue from the services it offers under these licences," it said.

"So, there is no scope to separate NTTN's (revenue) from the accounts. Yet, the BTCL is committed to comply with the guidelines by the BTRC," it said, but did not mention any time regarding going public.​

 

[Saif]

BTRC's draft satellite internet guideline risks becoming a digital gatekeeper

This draft policy is hiding a central duality in plain sight: Bangladesh is eager to welcome cutting-edge satellite technology, yet appears equally intent on tightly controlling its operation.

www.thedailystar.net

BTRC's draft satellite internet guideline risks becoming a digital gatekeeper

This draft policy is hiding a central duality in plain sight: Bangladesh is eager to welcome cutting-edge satellite technology, yet appears equally intent on tightly controlling its operation.

The draft guidelines from the Bangladesh Telecommunication Regulatory Commission (BTRC), named Regulatory and Licensing Guidelines for Non-Geostationary Orbit (NGSO) Satellite Services Operators in Bangladesh, outline a bold plan to connect the country's digital space with the growing global sensation of satellite internet connectivity. Image: Zarif Faiaz/Tech & Startup

Bangladesh's ambitious new policy draft, aimed at regulating non-geostationary satellite operators like Elon Musk's Starlink, is as innovative as it is restrictive. The draft guidelines from the Bangladesh Telecommunication Regulatory Commission (BTRC), named Regulatory and Licensing Guidelines for Non-Geostationary Orbit (NGSO) Satellite Services Operators in Bangladesh, outline a bold plan to connect the country's digital space with satellite internet connectivity. However, this draft policy is hiding a central duality in plain sight: Bangladesh is eager to welcome cutting-edge satellite technology, yet appears equally intent on tightly controlling its operation.

A restrictive embrace of satellite connectivity

Satellite internet, particularly Starlink, has been long sought after by the country's IT community. Starlink itself is trying to get in for the last 2 years. The draft guidelines beacon a welcome move, but it risks entangling this technology in regulatory limitations. For instance, the requirement that all satellite data pass through local gateways connected to the country's International Internet Gateway (IIG) undermines one of satellite internet's primary benefits: its independence from national infrastructure. This dependency could mean that even satellite users might experience government-mandated shutdowns, as happened in Bangladesh during the July uprising, a scenario that seems counterproductive for a nation striving to modernise its digital landscape.

The guidelines are equally rigorous regarding national security and data monitoring, where the government's intent to exert control is unmistakable. Satellite companies, such as Starlink, are required to adhere to local data-sharing laws, including compliance with the Cyber Security Act, effectively granting access to the National Telecommunication Monitoring Center (NTMC). The NTMC's surveillance powers are extensive, allowing for monitoring, storage, and even blocking of user data, ostensibly in the name of security. Satellite operators must store user data—specifically Internet Protocol Detail Records (IPDR) and Call Detail Records (CDR)—for up to a year, a burdensome requirement that may deter operators from entering the market.

This emphasis on surveillance echoes recent controversies around Bangladesh's cybersecurity policies, which critics argue are sometimes used to suppress dissent rather than protect citizens. Such a regulatory landscape contrasts sharply with the privacy-focused, decentralised model championed by satellite operators. Starlink's entry into other markets has emphasised user privacy and minimal governmental intervention—characteristics that could be at odds with Bangladesh's approach.

Even for companies willing to navigate Bangladesh's complex regulatory environment, financial barriers remain high. The guidelines mandate a non-refundable application fee of BDT 5 lakh, an annual license fee of $50,000 USD, and a 5.5% annual revenue share, along with a 1% revenue contribution to a space industry development fund. These fees are a formidable entry cost, manageable perhaps for Starlink, but prohibitive for smaller operators, limiting competition and market diversity.

Operational restrictions add further limitations. The draft prohibits satellite providers from offering services beyond those outlined in Clause 16.4, which lists standard satellite offerings but excludes options like direct-to-home broadcasting or satellite-based mobile communications. This stifles the potential for satellite operators to adapt their services to meet the evolving needs of Bangladesh's digital landscape, reducing the competitive and innovative value that these services might otherwise bring.

Stifling the benefits of global connectivity

Bangladesh's guidelines reflect an emerging trend in its digital governance—embracing technology, but on controlled terms. The central question remains whether these strict measures balance national security and digital progress effectively or risk isolating the nation from the benefits of global connectivity. Bangladesh's recent history of internet shutdowns underlines the potential for sweeping shutdown powers. Extending this authority to satellite internet could hinder Bangladesh's digital aspirations, potentially severing the country from global communication channels during critical times.

The BTRC has opened the guidelines for public input until November 18, inviting citizens, businesses, and experts to voice their opinions on the policy's merits and challenges. This consultation phase offers a crucial opportunity for stakeholders to advocate for a more balanced regulatory approach—one that prioritises security without stifling innovation.

To realise the transformative potential of satellite internet, the BTRC must consider moderating its more restrictive measures. Adopting a more flexible regulatory stance—allowing satellite operators a degree of operational independence within defined security frameworks—could create an open market where companies of all sizes can contribute to a digitally inclusive Bangladesh. Revisiting data-sharing requirements and valuing privacy as a trust-building measure with international operators will also be key to creating a mutually beneficial regulatory environment.

Zarif Faiaz is the In-Charge at The Daily Star's Tech & Startup section.​

 

[Saif]

Mobile phone operators hail govt move to introduce satellite internet

Mobile phone operators and other stakeholders have welcomed the move of opening doors for satellite internet, appealing to telecom regulator to consider collaborative approach and non-discriminatory treatment for successful integration of this service into the country’s telecommunications lan

thefinancialexpress.com.bd

Mobile phone operators hail govt move to introduce satellite internet
BSS
Published :
Nov 08, 2024 17:16
Updated :
Nov 08, 2024 17:16

Mobile phone operators and other stakeholders have welcomed the move of opening doors for satellite internet, appealing to telecom regulator to consider collaborative approach and non-discriminatory treatment for successful integration of this service into the country’s telecommunications landscape.

They said the initiative might unleash new opportunities for bridging digital divides alongside backhauling, disaster management and customer data utilisation.

The operators and stakeholders, however, are meticulously reviewing draft guidelines for Non-Geostationary Orbit (NGSO) Satellite Service to assess the possible impact of it into the industry as it could pave way of wholly owned foreign companies to obtain licenses such as Elon Musk's Starlink and similar companies to enter Bangladesh.

The telecom regulator -Bangladesh Telecommunication Regulatory Commission (BTRC) - on October 29 uploaded the draft regulatory and licensing guidelines for NGSO Satellite Service Operator on website, seeking opinion by November 18 to finalise the guidelines.

Talking to BSS news agency, Shahed Alam, chief corporate and regulatory officer of Robi Axiata, said, “We welcome the initiative to introduce satellite internet in our country, recognizing its potential to revolutionise data services.”

He noted that this advancement could pave the way for new opportunities in areas such as backhauling, disaster management and customer data utilization.

On the contrary, Shahed Alam expressed their concerns regarding the proposed guidelines and the existing ecosystem for implementing such services, as they may prove impractical.

He said, “We believe that a collaborative approach is essential to ensure the successful integration of satellite internet into our telecommunications landscape.”

Taimur Rahman, chief corporate and regulatory affairs officer at Banglalink, said, "The regulator’s initiative to conduct a public consultation before introducing this new service is commendable, which we appreciate.”

He continued, “We’re confident that this process will provide essential insights to help shape its future direction.”

As this service is new to Bangladesh, Taimur Rahman said, they are diligently reviewing the BTRC’s guidelines to evaluate its impact on the telecommunications sector and foreign direct investment (FDI) in both the short and long terms.

“Following a thorough assessment, we will submit our feedback to the BTRC,” he said, adding, “It is vital that we consider the interests of all stakeholders in the digital ecosystem."

Sharfuddin Ahmed Chowdhury, Head of Communications, Grameenphone, said, "Grameenphone welcomes any new technology that brings positive change to people's lives, society, the economy, and the country as a whole.”

However, the introduction of any new license should ensure non-discriminatory treatment that promotes market competitiveness among all players, including existing ones, across the entire value chain, he added.

Sharfuddin noted, “It is important to thoroughly assess the security implications of all aspects of the new technology and incorporate the necessary provisions in the licensing obligations to address these concerns.”

Appreciating BTRC for initiating the consultation process, he said, “We’re currently reviewing the draft guidelines and will respond to BTRC."

Internet Service Providers Association of Bangladesh (ISPAB), a platform of firms engaged in providing internet services to the customers, is also ready to welcome any new technologies. Before that, it emphasised to identify the necessity of this technology first before moving to it.

ISPAB President Md Emdadul Hoque told BSS that they always welcome new technologies if those are suitable for the country and industry.

“We’ve no objection to welcome new technologies, but priority should be considered first whether the technology is suitable for the country and its people,” he said.

The ISPAB President suggested the telecom regular to consult with the stakeholders before switching to the new service, as foreign companies will take the money out of the country.

The draft guidelines said that proprietorship, partnership and companies registered under “Registrar of Joint Stock Companies and Firms” under the Companies Act 1994 are eligible to apply for the license to build, own, maintain and operate NGSO Satellite systems and services in Bangladesh.

It also mentioned that 100 percent FDI or Foreign Partnership or Joint Venture or investment from Non-Resident Bangladeshi (NRB) is permitted to build, own, maintain and operate NGSO Satellite systems and services.

According to the draft guidelines, the license will be valid for five years.

It adds that the licensee is authorised to provide the following NGSO satellite services: broadband internet services, intranet services (domestic data communications), Internet of Things and machine-to-machine communication, earth station in motion service, earth exploration satellite service, remote sensing/meteorological services and any other services approved by the BTRC.

However, operators aren’t authorised to provide direct-to-home services, broadcasting services, satellite IMT-based services or telecommunications services.

The application/processing fee has been set at Tk 500000, with an acquisition fee of $10,000 and an annual fee of $50,000. Additionally, an annual station/terminal fee per terminal is set at $20.

The licensee will also have to share 5.5 per cent of its annual audited gross revenue with the BTRC. Another 1 per cent of the gross revenue must be paid as part of the "contribution to space industry development and management".

The licensee must establish at least one gateway system within Bangladesh before commencing services. However, the BTRC encouraged the licensee to establish additional gateways.

Any user terminal placed within Bangladesh's geographical boundary must be authenticated and served through this local gateway. All traffic from these terminals must be routed through this local gateway for services within Bangladesh, according to the draft.

The NGSO gateway shall connect to international internet gateways to handle international internet data traffic.​

 

[Bilal9]

Bangladesh has the most expensive Internet and also the slowest one in all of Asia, including the subcontinent.

BTRC's first job now needs to be squeezing the free-for-all dance these providers are doing and bring our Internet bandwidth and quality to Asian if not world standards.

These cell providers should be held to book on why they can't provide the service level agreement (SLA) they have with customers.

 

[Saif]

Bangladesh slips a notch in mobile internet speed: Ookla

Bangladesh has slipped a notch in its global ranking for mobile internet speed performance, according to Ookla’s Speedtest Global Index.

www.newagebd.net

Bangladesh slips a notch in mobile internet speed: Ookla
Staff Correspondent 29 November, 2024, 22:28

Bangladesh has slipped a notch in its global ranking for mobile internet speed performance, according to Ookla’s Speedtest Global Index.

The country stood at 89th place out of 111 countries in Ookla’s mobile internet speed index for October. The country previously held the 88th position in September.

The index highlighted that the average mobile internet download speed in Bangladesh decreased to 27.56 Mbps in October from 28.42 Mbps in September.

Globally, United Arab Emirates held the top position of the list, offering the fastest mobile internet with an average speed of 428.53 Mbps in the reporting period. This is up from 413.14 Mbps, showing that UAE continues to provide high-speed internet to its users.

Neighbouring country India also ranked high, holding the 26th position with an average download speed of 95.67 Mbps in October. India has remained in the same position it held in September, although the median download speed saw a slight increase from 91.72 Mbps.

Among the other South Asian countries, Maldives is at 25th position, Pakistan at 100th, Sri Lanka at 103th and Afghanistan is at 111th position in terms of mobile internet speed. The October report did not include data from Myanmar.

Bangladesh’s mobile network landscape is dominated by five major providers, namely Banglalink, Grameenphone, Robi, Airtel and Teletalk.

Among them, Banglalink has emerged as the fastest internet provider. According to the report, 89 per cent of Banglalink’s tests showed a minimum download speed of at least 5 Mbps and an upload speed of at least 1 Mbps.

In addition to mobile internet, Bangladesh also deteriorated in fixed broadband speed. The country has moved down three places to rank 101th globally among 158 countries, compared to its previous position of 108th.

The report states that the median fixed broadband download speed in October was 48.06 Mbps compared with 48.38 Mbps reported in the previous month.

Ookla’s Speedtest Global Index, which provided these rankings, is a widely recognised tool that compares internet speeds across the world.​

 

[Saif]

BTRC rejects proposal

The Bangladesh Telecommunication Regulatory Commission has refused a proposal to provide transit for bandwidth to India through Bangladesh as the transit might weaken Bangladesh’s role as a regional digital hub...

www.newagebd.net

BTRC rejects proposal
Taufiq Hossain Mobin 05 December, 2024, 00:45

The Bangladesh Telecommunication Regulatory Commission has refused a proposal to provide transit for bandwidth to India through Bangladesh as the transit might weaken Bangladesh’s role as a regional digital hub.

The BTRC issued a letter in this regard on December 1.

International terrestrial cable operators ‘Summit Communications’ and ‘Fiber at Home’ submitted an application during the former Awami Legue government to the BTRC for its approval to permit Bharti Airtel Limited to run a transit connection from Akhaura border to Singapore by establishing an internet circuit at Akhaura border.

A terrestrial cable is a communications cable which crosses land, rather than water.

Contacted, several BTRC officials denied commenting on the matter.

They, however, said that the transit would offer minimal benefits to Bangladesh. The primary beneficiaries would have been Summit Communications and Fiber at Home, which were allegedly connected with the deposed Awami League government. The actual advantage would have gone to India.

Bharti Airtel submitted the proposal to Bangladesh’s Ministry of Foreign Affairs. The ministry then forwarded it to the Post and Telecommunication Division and then to BTRC for evaluation.

According to a letter issued by the engineering and operations division of the commission on December 1, the BTRC decided not to approve the application after reviewing it.

Content delivery networks, such as Google, Meta, Akamai, and Amazon might be discouraged to establish their data centres in Bangladesh, if the International Private Leased Circuit transit connection is approved, the letter said.

This kind of connection will weaken Bangladesh’s position as a regional digital hub, it said.

‘The capacity of the submarine cables will increase in the future. If this transit proposal is approved, it might decrease the chance to export bandwidth to the neighbouring countries by using the capacity of those submarine cables,’ it added.

International terrestrial cable operators supply 60 per cent of the international bandwidth used in the country, Bangladesh Submarine Cables PLC supplies the remaining 40 per cent. Despite having usage capacity of 7,217 Gbps, the company’s bandwidth usage is only 2,343 Gbps currently.

Bandwidth is the maximum amount of data that can be transmitted over an internet connection in a given time. Higher bandwidth means faster downloads, smoother streaming, and better overall performance, making it crucial for handling modern internet activities and multiple devices.

‘If such connections are provided in favour of ITC operators, it will disrupt making the huge quantity of unused bandwidth of the BSCPLC usable,’ the letter further said.

India currently enjoys road transits through Bangladesh by four transhipment routes for Indian traders in Tripura and other north-eastern states, and a rail transit to carry goods and passengers across its territory.​

 

[Saif]

BTRC recalls bandwidth transit bid to India

The internet regulator is abandoning its plan to allow Bangladesh to be the transit point for bandwidth supply to India’s northeastern states on concerns that it could weaken the country’s potential to become a regional internet hub.

www.thedailystar.net

BTRC recalls bandwidth transit bid to India

Star visual

The internet regulator is abandoning its plan to allow Bangladesh to be the transit point for bandwidth supply to India's northeastern states on concerns that it could weaken the country's potential to become a regional internet hub.

Last year, the Bangladesh Telecommunication Regulatory Commission (BTRC) sought the telecom ministry's permission after Summit Communications and Fiber@Home applied to supply bandwidth from Singapore via the Akhaura border to the northeastern region of India through Bharti Airtel.

Summit Communications's chairman is Muhammad Farid Khan, the younger brother of Awami League presidium member Faruk Khan, also a five-time member of parliament from the Gopalganj-1. Farid is also a close friend of Sajeeb Wazed Joy, the son and ICT affairs adviser of ousted prime minister Sheikh Hasina.

Fiber@Home was a major beneficiary during the AL regime from 2009 to 2024, ranking second to Summit Communications in terms of major government contracts and licences won.

Before the two international terrestrial cable operators sought the BTRC's approval, Bharti Airtel applied to the foreign ministry the previous year for permission to connect Agartala through Akhaura to Bangladesh's submarine cable landing stations in Cox's Bazar and Kuakata to reach Singapore.

Under this arrangement, Bangladesh would serve as the transit route -- enabling faster internet connection for India's northeastern states of Tripura, Arunachal Pradesh, Assam, Mizoram, Manipur, Meghalaya and Nagaland.

At present, the states, popularly known as the Seven Sisters of India, are connected to Singapore through submarine cables in Chennai using the neighbouring country's domestic fibre optic network.

The landing station in Chennai is about 5,500 kilometres away from the northeastern part -- a considerable distance that compromises the internet speed.

Due to the mountainous nature of the region, the maintenance of fibre optic networks and the installation of new networks are relatively difficult.

"The guidelines do not permit such 'transit' arrangements," Md Emdad ul Bari, chairman of BTRC, told The Daily Star on Thursday.

Subsequently, the internet regulator wrote to the telecom ministry last week to recall its earlier application.

The transit arrangement will also strengthen India's position as a dominant internet hub and weaken Bangladesh's potential to become a regional hub, according to a BTRC document.

It would also hinder the potential for Bangladesh to become a Point of Presence (PoP) for content delivery network (CDN) providers such as Meta, Google, Akamai and Amazon.

A PoP is a physical location, facility or data centre that acts as an interconnection point for various networks. It facilitates the exchange of data traffic between different network providers, internet service providers and CDNs. In short, it is a central hub where data highways from different regions converge.

Currently, CDNs such as Meta, Google, Akamai and Amazon have their PoPs in Indian cities such as Kolkata, Chennai and Mumbai. Through transit connectivity provided by Summit and Fiber@Home, the Indian telecom operators would easily be able to offer internet services to the Seven Sisters.

Besides, the arrangement would obstruct Bangladesh's ability to provide internet services to parts of Myanmar and northwestern China through its own infrastructure.

Approximately 60 percent of the international bandwidth in Bangladesh is supplied by the seven ITCs like Summit Communications and Fiber@Home, while the remaining 40 percent is provided by Bangladesh Submarine Cables (BSC).

Despite BSC's bandwidth capacity of 7,217 Gbps, only 2,343 Gbps is currently being utilised.

Granting such connections to ITC operators despite BSC's adequate capacity and redundant cables would further increase ITC operators' bandwidth usage, undermining efforts to utilise BSC's unused bandwidth effectively.

"This arrangement would not harm Bangladesh," said Sumon Ahmed Sabir, chief technology officer at Fiber@Home, while acknowledging that the Seven Sisters region would undoubtedly benefit more.

Bangladesh, however, would also gain by earning foreign currency, while BSC, ITC and Nationwide Telecommunication Transmission Network (NTTN) operators would share in the profits, he added.

Summit Communications did not respond to The Daily Star's request for comment.

"Ultimately, the bandwidth from India will end up in India, reducing Bangladesh to merely a transit point," said Aminul Hakim, president of the Bangladesh Internet Governance Forum.

At first glance, it may seem that Bangladesh would earn foreign currency from this arrangement.

However, since the two local ITC providers facilitating the transit already import bandwidth from Indian companies, there is a significant likelihood of service exchange, depriving the government of revenue, Hakim added.​

 

[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.

www.thedailystar.net

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%

www.thedailystar.net

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.

www.thedailystar.net

Handset production rose 17% in 2024 but challenges persist

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

[Saif]

BTRC initiates telecom licensing reforms for better services

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

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BTRC initiates telecom licensing reforms for better services

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

[Saif]

Grameen Telecom gets digital wallet licence

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

www.thedailystar.net

Grameen Telecom gets digital wallet licence

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

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

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

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

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

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

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

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

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

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

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

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

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

BANGLDESH BANK'S REQUIREMENTS

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

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

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

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

WHO'S BEHIND SAMADHAN SERVICES?

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

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

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

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

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

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

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

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

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

 

[Saif]

Reimagining Bangladesh’s telecom future

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

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Reimagining Bangladesh’s telecom future

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The author is chief corporate affairs officer of Grameenphone​

 

[Saif]

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

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

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

Representational image generated by using AI/Canva.

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

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

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

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