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China fund likely for Teletalk's 4G network expansion

MIR MOSTAFIZUR RAHAMAN | Sunday, 11 February 2024


The state-owned mobile operator, Teletalk Bangladesh Limited, eyes Chinese assistance in implementing one of its key projects that aims to expand the 4G mobile broadband networks up to the union level.
The Chinese government, according to sources, has agreed in principle to extend its support worth US$162 million to upgrade its technology and expand services. The operator has been limping for years mainly due to lack of investment coupled with mismanagement.
The private sector mobile operators, owned by foreign companies, have invested three times more than the Teletalk, a high official in the telecom ministry told the FE.


The relevant Bangladesh authorities have sent a letter to the Chinese government recently requesting the latter to send a list of Chinese companies from amongst which one will be selected to implement the project, he said.
China is likely to fund 162 million dollar for the project and the Bangladesh government will be spending the remaining amount from its own coffer for the US$200 million project.
When completed, the project is expected to revamp the ailing state mobile operator and help it boost its share in an ever-expanding market.
When the Teletalk had hit the market in 2004, people enthusiastically made beelines to become its subscribers with the expectation of better service at reduced costs. However, their hope was dashed within a very short time, as the company fell behind others in providing fast and latest telecom services. Allegations of corruption and mismanagement surfaced against the state-owned company. Presently, the Teletalk has only 3.0 per cent market share.
However, with the completion of the three-year project to be completed with Chinese assistance the Teletalk will be able to boost its share in the market, officials expressed the hope.
The company is in the midst of implementation of another project that would enable it to launch 5G services.
The Tk 20-billion project, which is being implemented with government's own money, is expected to be completed after one and a half years.
Officials said the new project will expand the broadband network coverage up to union level and help modernise the system.
Currently, the Teletalk has around 6000 network towers whereas the other operators have access to far greater number of towers, they said, explaining the reasons behind the poor state of the company.
The company owes nearly Tk. 19 billion to the Bangladesh Telecommunication Regulatory Commission (BTRC), in the form of unpaid licence fees, revenue sharing and spectrum fees and payments to the social obligation fund.
In the last 29 years the company incurred a loss of TK 13.37 billion.
It has an outstanding of TK 20 billion in the market but chances to realise the same is very slim, an official said.
Last week the state minister for telecom warned that if any state-owned telecom agency including the Teletalk failed to return to profit track by next June, the management of the concerned company would be restructured.
The company was incorporated on 26 December, 2004 as a public limited company under the Companies Act, 1994 with an authorized capital of Tk.20,000,000,000 being the only government sponsored mobile telephone company in the country. On the same day the Company obtained Certificate of Commencement of Business.
As the only Bangladeshi mobile operator and the only operator with 100 per cent native technical and engineering human resource base, Teletalk had the opportunity to offer the true people's phone.
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