Bangladesh’s ambition to build a digitally inclusive economy hinges on whether its telecom sector can operate as a stable, investable, and innovation-driven industry, Grameenphone CEO Yasir Azman said, warning that unresolved structural problems continue to threaten national digital goals.
In a recent interview with TIMES of Bangladesh, Azman described 2025 as a year of progress after long stagnation.
“As I look at developments with optimism, I consider 2025 a transition year toward a better 2026,” he said, stressing that progress remains conditional.
The sector, he said, has endured prolonged instability, policy uncertainty, and repeated disruptions. Renewed policy momentum is now the primary source of improvement.
Telecom policy has advanced after years of delay, preparations for the 700 MHz band spectrum auction have begun, and several previously blocked issues have received favourable amendments.
While regulatory oversight remains strict—especially on service quality—operators have reached working arrangements with the regulator.
While many directives still await approval, the recently issued Telecom Act ordinance has introduced positive changes, though implementation challenges persist.
Bangladesh’s mobile telecom industry has been operating for 28 years, and his company alone now serves around 85 million users in a population of roughly 170 million.
“At this scale, telecom is inseparable from national development and cannot be treated as a marginal or purely commercial industry,” he said.
Globally, telecom is moving toward hyper-personalisation and flexible product design. Bangladesh fell behind due to “prolonged regulatory restrictions” that started to ease recently.
For instance, he said restrictions on Wi-Fi-based products have been lifted, and regulatory clarification on Hajj roaming pricing in local currency has eased costs for students and small businesses travelling abroad.
Infrastructure policy has also long been a persistent bottleneck.
“The withdrawal of restrictions on telecom operators using DWDM in dark fibre was critical because fibre is fundamental to delivering a proper data experience,” Azman said.
Looking ahead to 5G, he cautioned that mass adoption remains distant.
“5G is not an immediate solution for the mass market. Strengthening 4G remains the real priority,” he said.
Despite macroeconomic headwinds, groundwork has been laid. Telecom, Azman argued, is a national enabler.
“Reducing inequality and delivering services in health, education, finance, governance, and employment is impossible without strong connectivity and continuous innovation.”
He outlined three priorities for Grameenphone: customers, organisational readiness, and technology.
On customers, operators must go beyond voice and data. “Cybersecurity, privacy, protection of financial transactions, and safeguarding user data have become core responsibilities,” he said.
Azman added that enabling digital ecosystems through cloud services, IoT, connected devices, and platforms such as GP Shield is essential, even where returns are limited. Supporting small and medium enterprises and enabling corporate automation directly contributes to economic growth.
He also highlighted the potential of artificial intelligence. “AI can allow people to earn globally without leaving the country, including remote work paying around $15 per hour—provided connectivity is reliable, affordable, and supported by capable devices,” he said.
Equally critical is organisational readiness. “Are we prepared as companies? Is our workforce adaptable and ready for AI-driven change? Employee readiness will determine whether the sector can meet future demands,” he said.
Technology underpins both priorities, he added, stressing the need for continuous modernisation, energy-efficient networks, and vendor upgrades requiring increasing investments.
“Without this, telecom cannot function and national digital ambitions cannot be realised.”
Azman was candid about obstacles. Investor confidence remains low due to unresolved audit disputes affecting all operators.
“In 28 years, not a single year’s audit dispute has been fully resolved. Grameenphone alone carries liabilities of about Tk12,500 crore,” he said. Dialogue with regulators has resumed, including international arbitration, which he described as “a fairer and faster mechanism.”
Heavy taxation continues to compound challenges. He cited a structure that directs 55 per cent of consumer spending to the government, leaving narrow room for companies to sustain operations. High corporate taxes of 40–45 per cent alongside spectrum fees also deter investment.
“These costs suppress investment appetite and make Bangladesh increasingly unattractive for foreign investors,” he said.
Regulatory complexity further constrains innovation. “Every new product or service requires lengthy approval, sometimes taking years for Grameenphone,” Azman noted.
On service quality, he questioned recent drive-test findings, saying regulators acknowledged methodological gaps and initiated reviews. Measurable improvements include call-drop rates of around 0.15 per cent, much below the regulatory threshold. Average data speeds exceeding 15 Mbps, compared to 5 Mbps a few years ago.
However, latency and site access issues persist in more than 200 locations in Dhaka and at major facilities.
Regarding pricing, he said 4G data remains a subsidised business with per-unit costs continuing to fall. “Problems must be resolved to restore predictability, attract foreign investment, and prioritise customer benefit,” he said.
Serving 85 million customers, Azman warned, “If we struggle, those customers struggle.”
“Without resolving the challenges the telecom industry is facing, national progress will stall.”
Resolving disputes, restoring predictability, and rebuilding investor confidence are not optional if Bangladesh is to achieve its digital, economic, and social goals, he said.
