Government Rejects Multinational ‘VEON’s’ Merger Proposal; Teletalk to Be Upgraded to Maintain Market Competition
Teletalk Will Not Be Sold, Nagad to Remain Under Administrator: Telecom Minister
The government will not sell the state-owned mobile operator Teletalk; instead, it will upgrade the entity to boost market competition, announced Postal and Telecommunications Minister Fakir Mahbub Anam. Furthermore, due to ongoing legal complexities, the mobile financial service 'Nagad' will continue to be run by the government-appointed administrator. The announcement follows a $1 billion investment and merger proposal from multinational tech giant VEON.
State-owned telecom operator Teletalk will not be sold or merged; rather, the government will upgrade its infrastructure to ensure a competitive market balance, stated Postal and Telecommunications Minister Fakir Mahbub Anam. The minister made these remarks today during an interactive session with ICT and telecom journalists at the ICT Tower in Agargaon, capital.
Recently, VEON, the parent company of private telecom operator Banglalink, sent an official letter to the government expressing interest in partnering with two state-owned giants, Teletalk and BTCL. The proposal outlined a potential merger of Teletalk with Banglalink and showed a strong interest in acquiring or investing in the mobile financial service (MFS) 'Nagad'. On June 29, VEON Chairman Augie K. Fabela met with Prime Minister Tarique Rahman, pledging to facilitate a $1 billion investment in Bangladesh. Under the proposal, calculating the dollar rate at BDT 123.25, VEON intended to directly invest $250 million (BDT 3,081 crore) as the lead investor, while leveraging its global network to mobilize the remaining funds. The core focus of this investment was slated for next-generation digital infrastructure, digital banking, MFS, Artificial Intelligence (AI), and advanced connectivity tech.
Responding to queries about the acquisition proposal, Minister Fakir Mahbub Anam clarified the government’s firm stance: "We will not sell; we will upgrade Teletalk. Because if we are not present in this competitive market, then other operators will exploit you..."
Regarding the sale or transition of 'Nagad', the minister confirmed that the MFS provider will currently remain under the supervision of the administrator. "There are pending lawsuits regarding Nagad; the government will take a final call only after those legal disputes are resolved," the minister stated. Addressing the issue of the 'thousands of crores looted' from Nagad during the previous Awami League regime—information unveiled by the former interim government—the minister added, "The ACC (Anti-Corruption Commission) will look into these matters. Once money leaves people's pockets, recovering it becomes an uphill task."
//DBTech/IH/MI//
