The government is working on a predictable five-year tax framework for the telecom sector alongside a target to lift its contribution to 15 per cent of GDP within five years, Prime Minister’s Adviser Rehan Asif Asad said on Saturday, as policymakers move to stabilise fiscal policy and support digital economy expansion.
He was speaking at a roundtable titled “Future of the Telecom Sector: What the New Government is Thinking”, organised by the Telecom and Technology Reporters Network Bangladesh (TRNB) at InterContinental Dhaka.
Asad said the telecom and ICT sector currently contributes about 6 per cent of GDP and could expand significantly through coordinated reforms. He said the government is preparing a broader roadmap to position Bangladesh among the top 20 global telecom markets by 2035.
He said the sector’s effective tax burden stands at around 56 per cent, compared with a global average of about 22 per cent, while Bangladesh’s tax-to-GDP ratio of 6.5 per cent limits scope for immediate tax cuts. He indicated the upcoming budget may include investment incentives alongside the proposed five-year framework.
Market structure issues dominated the discussion.
Former Bangladesh Competition Commission director Khaled Abu Naser said around 91 per cent of market profits are concentrated in a single operator, urging stronger coordination between the Bangladesh Telecommunication Regulatory Commission (BTRC) and the competition authority.
BTRC Chairman Major General (Retd) Emdad Ul Bari said the licensing system does not permit monopoly or duopoly, though some segments may naturally evolve into oligopolies due to capital intensity. He said telecom policymaking has lacked sufficient data analysis, particularly on spectrum pricing and revenue impact.
He said the 700 MHz spectrum auction was conducted transparently and the spectrum cap was adjusted after Robi Axiata PLC withdrew from bidding to maintain market balance. He rejected allegations of irregularities involving Teletalk Bangladesh Limited.
Posts, Telecommunications, Information Technology and Science Minister Faqir Mahbub Anam, also present at the event, said the government is prioritising 5G and artificial intelligence expansion in rural areas, alongside plans to set up AI and freelancing training centres at upazila level. He said the sector could generate one million jobs, including overseas opportunities.
He confirmed there are no plans to privatise Teletalk Bangladesh Limited, but said upgrading the operator would require Tk5,000–6,000 crore investment.
Industry stakeholders flagged policy predictability as a key investment constraint.
Robi Axiata PLC Head of Regulatory and Corporate Affairs Sahed Alam called for a stable long-term revenue framework, modern spectrum policy, faster approvals, infrastructure sharing, coordinated telecom-data planning and stronger cybersecurity and data governance, alongside fair cost contribution from global digital platforms.
Foreign Investors’ Chamber of Commerce and Industry CEO Nurul Kabir said frequent policy changes continue to deter foreign investment by undermining long-term planning.
Teletalk Managing Director Nurul Mabud Chowdhury said the operator entered the market later than private peers and operates with significantly lower investment compared with the Tk60,000–70,000 crore invested by major private operators.
Speakers said a stable, investment-friendly and non-discriminatory telecom policy framework is essential to achieve the government’s growth targets and strengthen Bangladesh’s digital economy ambitions.
