Telecom Turmoil and Teletalk’s Spectrum Shortfall
As the only state-owned mobile operator, Teletalk is seeking to expand its services through the allocation of premium spectrum, following the model used for government-owned strategic telecommunications companies in countries such as India and Pakistan. In this regard, Faiz Ahmad Taiyeb, Special Assistant to the Chief Adviser, has sought policy amendments and requested input from sectoral experts.
Citing the need to extend voice, data, and digital service coverage and capacity to disaster-prone areas—where commercial players are reluctant to invest or make proportionally lower investments—Taiyeb emphasized maintaining market competition by ensuring Significant Market Power (SMP) balance, safeguarding affordable mobile call and internet rates for consumers, and keeping the spectrum allocation process competitive.
He stated that Teletalk currently operates with less spectrum than its competitors, despite repeated requests over the years for allocations in line with its demand. "Considering the total number of customers nationwide and the scale of network infrastructure, Teletalk has consistently received less spectrum across all bands compared to other operators—often negligible in quantity. Despite strong early demand for Teletalk SIMs, over the past decade and a half the company has failed to acquire a significant customer base, for which I believe weak management is partly to blame," he remarked.
“The previous government left Teletalk in an almost defunct state, which has now become a thorn in our side,” Taiyeb added. He noted that compared to leading mobile companies, Teletalk has only about one-fifth the number of base stations for 2G and one-tenth for 4G. “With such a negligible number of towers, it is almost impossible to deliver quality voice and internet services. In rural areas where Teletalk has no investment, spectrum is simply going to waste,” he said.
According to the Acting Special Assistant of the Ministry of Posts, Telecommunications and Information Technology, after taking office they found that Teletalk had no low-band spectrum to provide quality 4G service, only a small allocation in mid-band, and no investment to utilize its upper mid-band spectrum. "The Awami League government had secured some funding through a G2G agreement, but it was misappropriated and squandered through corruption, leaving nothing. Due to a lack of foresight and adequate investment in the previous administration, Teletalk's insufficient number of BTS sites has prevented full utilization of allocated spectrum. However, in remote areas such as the Sundarbans, haor regions, and hill tracts, Teletalk's network coverage is comparatively better, and the allocated spectrum is being used effectively—though these areas also suffer from spectrum shortages," he said.
To address this adverse situation, Taiyeb disclosed that in the past, the Department of Posts and Telecommunications had sent a proposal to the Ministry of Finance to convert Teletalk’s outstanding dues to the BTRC into equity. “If resolved, the outstanding payment could be transferred from one government account to another. Upon approval, this could settle Teletalk’s spectrum-related liabilities. Additionally, as in neighboring countries, it could be considered whether an executive order might allocate spectrum in favor of state-owned Teletalk, thus avoiding such outstanding dues in the future,” he explained.
“Since Teletalk is a state-owned company, the capital for spectrum purchase ultimately depends on government-allocated funds. In Bangladesh, it is common for ministries and their internal agencies to owe each other money—these are long-standing interdepartmental and intradepartmental financial matters. In state-owned enterprises, such receivables and payables are a normal picture. Therefore, the ministry does not entertain simplistic ideas that spectrum allocation for Teletalk should be blocked on this basis. On the contrary, there is a practice in many countries, including India and Pakistan, of allocating premium spectrum to government-owned strategic telecom companies to ensure disaster-prone areas are served, to maintain market competition and SMP balance, to protect consumer-friendly call and internet pricing, and to keep the allocation process competitive,” he added.
On August 11, just before midnight, Taiyeb took to his social media platform to seek expert opinions—both domestic and international—on what policy the Ministry of Posts, Telecommunications and Information Technology should adopt regarding spectrum allocation for cellular mobile service providers, considering public expectations. Many responded in the comments section with their suggestions.
