Publish: 12:29, 06 Jan, 2025 Updated: 15:28, 06 Jan, 2025

Hurdles facing investment in telecom sector

Kazi Shohag
Hurdles facing investment in telecom sector
Symbolic Image: BSS

The Telecommunications sector of Bangladesh is at a crossroads, facing significant hurdles that demand immediate attention. The sector faces numerous obstacles deterring investment, according to industry experts, the challenges include fragmented licensing frameworks, restrictive regulations, limited infrastructure sharing, high spectrum costs, excessive taxation, lack of collaborative business practices, and unequal market competition.

The Bangladesh Telecommunication Regulatory Commission (BTRC) has acknowledged these issues, but experts contend that the sector lacks an environment conducive to healthy competition. Dominance by a single operator, reportedly capturing over 90% of market profits, remains a critical concern. Md Khalid Abu Naser, former director of the competition commission, remarked that the commission has been ineffective since October 15, leaving these challenges unaddressed and discouraging further investment.

A fragmented licensing framework is a significant barrier for new investors. Political interference often compromises good governance, rendering the process opaque. Regulatory restrictions, such as delays in active sharing guidelines essential for infrastructure development, further hinder sectoral growth.

Bangladesh ranks among the highest globally in spectrum pricing, posing a severe challenge for operators. Adding to this burden is the world’s highest tax rate on mobile network operators (MNOs), at 54.4%, along with a Tk 300 SIM tax. These financial strains limit operators’ ability to expand and innovate. Compounding the issue, MNOs face restrictions on laying fiber in remote areas, hampering network efficiency and reach.

The sector also struggles to capitalize on allied businesses like Over-the-Top (OTT) services and Digital Financial Services (DFS). Regulatory constraints prevent MNOs from fully leveraging these opportunities, curtailing their ability to diversify and monetize networks.

Unequal competition remains a pressing issue. A single operator reportedly earns disproportionate profits annually, leaving smaller competitors at a disadvantage. Regulatory policies often favor larger players, exacerbating monopolistic trends. Nurul Mabud Chowdhury, Managing Director of Teletalk, characterized the competitive environment as “unhealthy” and detrimental to smaller operators’ survival.

At a recent roundtable organized by the Telecom Reporters Network Bangladesh (TRNB), experts stressed the urgency of reforms. They highlighted the need to enforce Significant Market Power (SMP) guidelines introduced in 2018. Md Khalid Abu Naser pointed out that critical clauses, such as the annual review mandated under Section 7(11) of the SMP Policy, have been overlooked.

Robi’s Head of Corporate Affairs, Sahidul Alam, underscored the importance of fair competition for economic growth. “Current telecom regulations disproportionately benefit larger operators, stifling smaller competitors,” he said. Banglalink’s Head of Corporate Affairs, Taimur Rahman, echoed the sentiment, calling for immediate implementation of existing regulations and faster infrastructure sharing.

Lt. Col. (Retired) Md. Zulfikar, Secretary General of the Association of Mobile Telecom Operators of Bangladesh (Amtob), stressed the need for a competitive market to attract investment. “A comprehensive regulatory framework is imperative to address these challenges,” he said.

Md Khalid Abu Naser reiterated the need for a functional competition commission to tackle monopolistic practices. He called for systemic changes to create a more equitable and investment-friendly environment.

TIM Nurul Kabir, Executive Director and CEO of the Foreign Chamber of Commerce and Industry, proposed revising the current licensing model. He also suggested establishing a Research and Development Department within BTRC to drive innovation and sectoral growth.

BTRC Chairman Major General (Retired) Emdad ul Bari emphasized the importance of collaboration and customer-focused policies. He urged stakeholders to “adopt a broader perspective” that empowers consumers while supporting businesses to enhance service quality.

Translated by Jisan Al Jubair

Bd-pratidin English

More News
Meta’s head of AI research stepping down
Meta’s head of AI research stepping down
China launches test satellite for satellite internet technology
China launches test satellite for satellite internet technology
ChatGPT studio Ghibli image generation now free for all users
ChatGPT studio Ghibli image generation now free for all users
Court overturns FDA rule on Laboratory-Developed Test Regulation in USA
Court overturns FDA rule on Laboratory-Developed Test Regulation in USA
SpaceX launches private astronauts on first crewed polar orbit
SpaceX launches private astronauts on first crewed polar orbit
Security spring cleaning: 7 essential steps to avoid getting hacked
Security spring cleaning: 7 essential steps to avoid getting hacked
Japanese researchers develop eco-friendly plastic that dissolves in sea water
Japanese researchers develop eco-friendly plastic that dissolves in sea water
ChatGPT Ghibli-style image generation surges: "Can yall please chill"
ChatGPT Ghibli-style image generation surges: "Can yall please chill"
Five tallest skyscrapers ever planned
Five tallest skyscrapers ever planned
Fossilized fish up to 16mn years old found in Australia
Fossilized fish up to 16mn years old found in Australia
Scientists find new clue to life’s origins
Scientists find new clue to life’s origins
Elon sells social media platform X for $33 billion
Elon sells social media platform X for $33 billion
Latest News
Meta’s head of AI research stepping down
Meta’s head of AI research stepping down
just now | Tech
Eid Tourism: 'Monotony' outside Dhaka, 'confinement' within
Eid Tourism: 'Monotony' outside Dhaka, 'confinement' within
5 minutes ago | National
'Suspected' US airstrikes in Yemen kill at least 4 people near Hodeida
'Suspected' US airstrikes in Yemen kill at least 4 people near Hodeida
17 minutes ago | International
Tarique sends Eid gifts to July martyr Dr Rubel’s family
Tarique sends Eid gifts to July martyr Dr Rubel’s family
24 minutes ago | National
Tomato farmers face crisis as prices collapse
Tomato farmers face crisis as prices collapse
31 minutes ago | National
Cox’s Bazar is abuzz with tourists
Cox’s Bazar is abuzz with tourists
33 minutes ago | National
Real Madrid to Copa del Rey final after thrilling 4-4 draw with Real Sociedad
Real Madrid to Copa del Rey final after thrilling 4-4 draw with Real Sociedad
35 minutes ago | Sports
Saka scores in Arsenal win on return from injury. Forest beats United thanks to Elanga’s wonder goal
Saka scores in Arsenal win on return from injury. Forest beats United thanks to Elanga’s wonder goal
39 minutes ago | Sports
Turkiye secures $500m from World Bank to boost jobs in quake-hit region
Turkiye secures $500m from World Bank to boost jobs in quake-hit region
52 minutes ago | Business
Fugitive former FM Hasan Mahmud seen publicly at Eid congregation in London
Fugitive former FM Hasan Mahmud seen publicly at Eid congregation in London
53 minutes ago | National
China drills around Taiwan continue with code name 'Strait Thunder'
China drills around Taiwan continue with code name 'Strait Thunder'
1 hour ago | International
Musk condemns 'terrorist' attack on Tesla dealership in Italy
Musk condemns 'terrorist' attack on Tesla dealership in Italy
1 hour ago | Business
Yemeni forces attack US aircraft carrier with missiles
Yemeni forces attack US aircraft carrier with missiles
1 hour ago | International
Trump pressing nuclear option on tariffs
Trump pressing nuclear option on tariffs
1 hour ago | International
Fight for corruption-free Bangladesh has just begun: Jamaat Ameer
Fight for corruption-free Bangladesh has just begun: Jamaat Ameer
1 hour ago | National
UN agency closes the rest of its Gaza bakeries
UN agency closes the rest of its Gaza bakeries
12 hours ago | International
3 die, 25 hurt in Cumilla road crash
3 die, 25 hurt in Cumilla road crash
12 hours ago | National
Perpetrators of enforced disappearances to face trial under interim govt
Perpetrators of enforced disappearances to face trial under interim govt
12 hours ago | National
Election and reforms to go in their own pace: Fakhrul
Election and reforms to go in their own pace: Fakhrul
14 hours ago | National
CA press wing debunks NY Times article
CA press wing debunks NY Times article
15 hours ago | National
Death toll surpasses 2,700 in Myanmar earthquake
Death toll surpasses 2,700 in Myanmar earthquake
16 hours ago | International
After fascist’s fall, election breeze blows everywhere
After fascist’s fall, election breeze blows everywhere
16 hours ago | National
IMF team to visit Dhaka for $2.39 billion loan review
IMF team to visit Dhaka for $2.39 billion loan review
17 hours ago | Business
Japan PM vows to support business hit by US tariffs
Japan PM vows to support business hit by US tariffs
17 hours ago | International
Gas fire in Malaysia injures more than 100 people & damages 49 houses
Gas fire in Malaysia injures more than 100 people & damages 49 houses
17 hours ago | International
Bike accident claims two lives
Bike accident claims two lives
17 hours ago | National
Study warns 4°C warming could slash global GDP by 40% by 2100
Study warns 4°C warming could slash global GDP by 40% by 2100
17 hours ago | Business
Tom Holland's Spider-Man 4 title revealed
Tom Holland's Spider-Man 4 title revealed
18 hours ago | Entertainment
41 lakh people left Dhaka ahead of Eid
41 lakh people left Dhaka ahead of Eid
18 hours ago | City
Sam Mendes to launch 4 'Beatles' movies in same month
Sam Mendes to launch 4 'Beatles' movies in same month
18 hours ago | Entertainment
Most Read
ChatGPT studio Ghibli image generation now free for all users
ChatGPT studio Ghibli image generation now free for all users
20 hours ago | Tech
Bangladesh sends 2nd rescue team thru armed forces to earthquake-hit Myanmar
Bangladesh sends 2nd rescue team thru armed forces to earthquake-hit Myanmar
20 hours ago | National
Initiative to transform Telephone Shilpa Sangstha into high-tech park
Initiative to transform Telephone Shilpa Sangstha into high-tech park
19 hours ago | National
Dhaka’s air quality ‘tolerable’ today
Dhaka’s air quality ‘tolerable’ today
21 hours ago | City
Cox's Bazar welcomes tourists as Eid holiday begins
Cox's Bazar welcomes tourists as Eid holiday begins
18 hours ago | National
US state department speaks on honoring July brave women
US state department speaks on honoring July brave women
19 hours ago | National
Salman Khan makes Eid  appearance from behind bulletproof glass
Salman Khan makes Eid appearance from behind bulletproof glass
21 hours ago | Entertainment
Warning signs of heart disease in women
Warning signs of heart disease in women
22 hours ago | Lifestyle
Fuel prices to remain unchanged in April
Fuel prices to remain unchanged in April
23 hours ago | National
Everyone must come together to establish voting rights: Khaleda Zia
Everyone must come together to establish voting rights: Khaleda Zia
21 hours ago | National
7 of family killed in firecracker explosion in India’s West Bengal
7 of family killed in firecracker explosion in India’s West Bengal
23 hours ago | International
CA press wing debunks NY Times article
CA press wing debunks NY Times article
15 hours ago | National
IMF team to visit Dhaka for $2.39 billion loan review
IMF team to visit Dhaka for $2.39 billion loan review
17 hours ago | Business
Empty Dhaka during Eid holidays, no traffic on roads
Empty Dhaka during Eid holidays, no traffic on roads
19 hours ago | City
Trump accuses Zelensky of ‘trying to back out’
Trump accuses Zelensky of ‘trying to back out’
22 hours ago | International
Fugitive former FM Hasan Mahmud seen publicly at Eid congregation in London
Fugitive former FM Hasan Mahmud seen publicly at Eid congregation in London
54 minutes ago | National
US judge rejects J&J's $10 billion baby powder settlement
US judge rejects J&J's $10 billion baby powder settlement
22 hours ago | Business
China launches military drills around Taiwan, calls Taiwan President a ‘parasite’
China launches military drills around Taiwan, calls Taiwan President a ‘parasite’
21 hours ago | International
China High Speed Transmission Group Launches Legal Action Over $930m Fund Misappropriation
China High Speed Transmission Group Launches Legal Action Over $930m Fund Misappropriation
21 hours ago | Business
Met office forecasts 60 kph storm within this noon
Met office forecasts 60 kph storm within this noon
23 hours ago | National
Study warns 4°C warming could slash global GDP by 40% by 2100
Study warns 4°C warming could slash global GDP by 40% by 2100
17 hours ago | Business
Fight for corruption-free Bangladesh has just begun: Jamaat Ameer
Fight for corruption-free Bangladesh has just begun: Jamaat Ameer
1 hour ago | National
41 lakh people left Dhaka ahead of Eid
41 lakh people left Dhaka ahead of Eid
18 hours ago | City
50 underprivileged people get food aid in Shayestaganj
50 underprivileged people get food aid in Shayestaganj
23 hours ago | Shuvosangho
‘No choice’ but to acquire nukes: Khamenei's adviser
‘No choice’ but to acquire nukes: Khamenei's adviser
23 hours ago | International
Fire at Petronas gas pipeline near Malaysia injures 33, rescue efforts underway
Fire at Petronas gas pipeline near Malaysia injures 33, rescue efforts underway
22 hours ago | International
Six burnt in gas explosion in capital
Six burnt in gas explosion in capital
19 hours ago | City
Japan estimates feared megaquake could cause $1.8 trln in damage, kill 300,000 people
Japan estimates feared megaquake could cause $1.8 trln in damage, kill 300,000 people
19 hours ago | International
Eid aftermath: many depart Dhaka
Eid aftermath: many depart Dhaka
18 hours ago | City
Tom Holland's Spider-Man 4 title revealed
Tom Holland's Spider-Man 4 title revealed
18 hours ago | Entertainment