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Mobile networks under strain: Operators chase new revenue, neglect core services

New business interests include OTT platforms, IoT, cloud computing, and payments

Mobile networks under strain: Operators chase new revenue, neglect core services
Representational image: Collected
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Saif Khandaker, a private-sector employee living on Garden Road in Tejgaon, is a Banglalink customer. For a long time, he has struggled with poor network coverage at home, forcing him to switch to Teletalk through mobile number portability (MNP).

Upal Barua works at an office on Box Culvert Road in Panthapath. Once inside, he loses his Grameenphone network connection completely. As a result, he cannot make voice calls or use mobile data.

Like Saif and Upal, many users have suffered from mobile network problems for years. Saif managed to restore connectivity by switching operators, but Upal has no such option because Robi and Banglalink also provide inadequate coverage at his workplace.

Upal said he spends much of his day at the office, making the lack of connectivity on his personal phone a persistent problem.

Robi Axiata customer Mizanur Rahman said operators were offering various digital services, including over-the-top (OTT) services.

“I am not getting properly the very service I am paying for. If the operator provides any other service now, that is not a priority for me,” he said.

For years, customers have complained about poor network quality from operators including Grameenphone, Robi Axiata, Banglalink and Teletalk.

With problems such as interrupted data services and dropped calls remaining unresolved year after year, questions are being raised about mobile operators expanding beyond their core businesses.

Maintaining service quality is part of their licence obligations, yet their growing focus on new ventures has prompted concerns about whether they are giving sufficient attention to their primary services.

Mobile operators in Bangladesh are pursuing businesses beyond voice calls, data and short message services (SMS), including OTT platforms, the Internet of Things (IoT), cloud computing, payment services and fixed wireless broadband.

The parent companies of Robi and Banglalink are also expanding beyond telecommunications.

As part of this expansion, Robi’s parent company, Axiata Limited, received a licence for Boost Digital Bank, while Banglalink’s parent company, VEON, and Square Group received a licence for Nova Digital Bank.

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Preliminary approval for the banks was granted at the central bank’s board meeting on 24 September.

Industry insiders say the expansion is primarily aimed at securing new revenue streams and capitalising on the growing digital economy.

Both operators have large customer bases. Their extensive networks and direct customer relationships could help them expand their digital banking businesses rapidly.

Grameenphone operates IoT, cloud, gpfi broadband and device businesses. It also provides artificial intelligence (AI)-based customer services and other AI services.

Beyond its core operations, Robi has separate business platforms named Axentec, Red Dot, BD Tickets, Robi Shop and Binge.

Banglalink’s largest digital business is Toffee, which offers live television, sports, web series, films, dramas and music videos.

Its myBL super app provides entertainment, learning, bill payment, ticketing and healthcare services, alongside online shopping. The operator has also launched an initiative called Reez.

Like Grameenphone and Robi, Banglalink offers wireless home broadband.

State-owned Teletalk gained considerable popularity among customers when it launched in 2005. However, its performance subsequently deteriorated because of inadequate network expansion and mismanagement.

আরও পড়ুন

It currently has 69 lakh customers, a figure that is declining rather than growing.

Teletalk also provides various government digital services, particularly public examination results, utility payments and recruitment-related services.

Operators argue that traditional services such as voice calls and SMS are gradually declining. Although data usage is growing rapidly, they say average revenue per user (ARPU), the average amount a company earns from each customer, remains discouraging.

However, the operators’ own financial reports do not support the claim that revenue from their core services is consistently declining.

Grameenphone’s annual report shows that total revenue rose 5.5 per cent to Tk15,871 crore in 2023, an increase of Tk830 crore from 2022.

The growth was driven by higher revenue from voice and data services, although the company did not specify the contribution of each segment.

In 2024, Grameenphone earned Tk8,450 crore from voice services, up 4.2 per cent from the previous year. Data revenue stood at Tk4,370 crore, down 3.8 per cent.

Robi Axiata earned Tk4,770 crore from voice services and Tk3,990 crore from data in 2024. Data accounted for 44 per cent of its total revenue.

In 2025, Robi earned Tk4,800 crore from voice services and Tk4,070 crore from data.

Revenue from voice calls rose 0.7 per cent, while data revenue increased 2.2 per cent. Data accounted for 45 per cent of total revenue.

In 2025, Robi’s voice revenue fell 2.9 per cent, although data revenue increased 5.1 per cent.

Banglalink reported revenue of Tk1,462 crore in the first quarter of 2023, including Tk493 crore from data services.

In the first quarter of 2024, total revenue rose to Tk1,544 crore, an increase of 5.6 per cent. Data revenue increased to Tk523.6 crore, representing growth of 6.2 per cent.

Its 4G customer base grew 23 per cent in 2024 compared with 2023.

These figures raise questions about operators’ claims that declining voice and data revenue is driving their diversification.

Instead, the expansion appears aimed at generating additional revenue and profit. Data services, despite operators’ concerns, continue to generate substantial revenue.

In the absence of a Bangladesh Telecommunication Regulatory Commission (BTRC) policy, mobile operators have historically operated businesses beyond their core services, including telecommunications towers and fibre networks.

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They also entered the handset business alongside SIM card sales without a dedicated regulatory policy from the outset.

Operators initially built their own telecommunications towers.

In 2018, BTRC awarded tower licences to four companies: Edotco, Summit, Kirtankhola and AB Hightech.

However, operators have yet to transfer all their towers because BTRC did not establish a deadline for the handover.

What industry insiders say

Telecommunications expert Sumon Ahmed Sabir said mobile operators in Bangladesh now wanted to enter virtually every type of business.

He warned that allowing operators to expand into all sectors to protect their businesses could harm local investors.

Information technology businessman and entrepreneur MA Hakim said mobile operators were failing to meet their network rollout obligations.

He cited the deadline for rolling out 5G services, which had passed long ago, and said the regulator had shown little concern about such failures.

Hakim warned that operators were laying the groundwork for an environment conducive to monopolistic business practices.

He said the prospect of obtaining telephone services, OTT content, digital banking and telemedicine from a single mobile operator might appear attractive.

However, he warned that within 10 years, one operator could dominate multiple businesses, potentially making services such as bKash and Nagad unnecessary and forcing platforms such as Bongo and Chorki to close.

What the operators say

Grameenphone Head of Communications Sharfuddin Ahmed Chowdhury said, “Grameenphone is evolving with these changing usage patterns, using technology, data-driven insights and AI to offer hyper-personalised services and bundles tailored to individual customer needs. We are also continuously introducing services that reflect how our customers’ digital lives are evolving. Notable examples include OneAI, GPShield and gpfi, etc.

“We will continue to strengthen our core connectivity business while evolving the services around it, keeping customers at the centre of our efforts to create meaningful value and contribute to a safer and smarter Bangladesh,” he added.

Banglalink Chief Corporate and Regulatory Affairs Officer Taimur Rahman said mobile operations remained at the core of Banglalink and that the company would continue striving to provide the best possible services to the people of Bangladesh.

He said the operator was also building complementary digital services around connectivity.

Its financial services would support greater financial inclusion, while Toffee, described as the country’s largest OTT platform, and Techvan, its device business, were designed to make digital content and affordable devices more accessible.

Questions were sent to Robi Chief Corporate and Regulatory Affairs Officer Shahed Alam, but no response was received.

Teletalk Managing Director Abdul Mabud Chowdhury declined to make any comment on the matter.

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