Govt Aims to Raise Telecom Sector Contribution to 15% of GDP in Five Years

Prime Minister’s Adviser Asif Asad Rehan has expressed optimism that Bangladesh’s telecom sector contribution to the national GDP could be increased to 15 percent within the next five years.

He said Bangladesh aims to become one of the world’s top 20 countries not in terms of subscriber numbers, but in service quality.

“We do not want to remain at the top only in subscriber count. We want to stand among the world’s leading nations in telecom service quality. That is why we are engaging with all stakeholders,” he said.

He made the remarks while speaking as special guest at a policy seminar organized by Telecom Reporters Network Bangladesh (TRNB) at InterContinental Dhaka on Saturday, May 16.

While discussing taxation in the telecom industry, Rehan said global tax rates imposed on mobile operators generally range between 20 and 25 percent. However, from the operators’ perspective, Bangladesh’s effective rate stands at around 15 percent, while from a broader macroeconomic perspective it is only about 6.5 percent — among the lowest globally.

“For this reason, it is extremely difficult for the government to significantly reduce taxes in this sector,” he added.

The adviser also disagreed with several commonly circulated statistics regarding Bangladesh’s telecom sector.

He acknowledged that the government would not be able to resolve all existing challenges in the upcoming national budget, but promised “the biggest good news” for consumers.

“We are trying to attract foreign investment. For both local and foreign entrepreneurs, we will announce a five-year roadmap covering VAT, taxation, and import policies for telecom equipment,” he said.

Regarding smartphone affordability, Rehan said the government is working to bring smartphones to the local market within a price range of BDT 5,000 to 6,000 by optimizing hardware costs in line with global market trends, where device component costs are estimated at around 60 US dollars.

He added that discussions are underway with Bangladesh Bank regarding installment-based financing facilities for smartphone purchases.

Rehan further stated that generating revenue from spectrum allocation is not the government’s primary objective. Instead, the focus is on ensuring maximum utilization of spectrum resources.

“As a sovereign nation, we are prioritizing cybersecurity, artificial intelligence, and digital adoption. A detailed roadmap will be announced after the budget,” he said.

He also noted that the government plans to invest in small entrepreneurs and innovators to strengthen the country’s digital ecosystem.

DBTech/IH/EK/OR