As the government prepares the rollout of the new national budget, Bangladesh's telecommunications, and information and communication technology (ICT) sectors find themselves at a pivotal moment. Amid growing concerns over internet quality, complex regulatory structures and slowing investment, policymakers, industry leaders and technology entrepreneurs are joining their voice in making a fervent call for a fundamental policy shift. Their message is clear: the sector must no longer be viewed primarily as a source of government revenue rather as a strategic enabler of economic growth and digital transformation.
The timing is significant. The government has set an ambitious target of increasing the contribution of the telecoms and ICT sectors to the country's gross domestic product from the current 8.0 per cent to 15 per cent in the coming years. Against this backdrop, the forthcoming budget is being closely watched as a critical indicator of whether fiscal policy will support or hinder that objective.
Seeking stability through Five-Year Fiscal Framework: Among the industry's foremost demands is the introduction of a predictable and stable fiscal regime. Businesses have long argued that frequent changes to taxation, value-added tax (VAT) and customs duties create uncertainty, complicating investment decisions and discouraging long-term planning.
A proposal attracting the greatest attention ahead of the budget is the establishment of a five-year roadmap for tax, VAT and customs policies. Industry stakeholders believe such a framework would provide the certainty needed for large-scale infrastructure investments and encourage both domestic and foreign investors to commit capital with greater confidence.
The call reflects a broader recognition within government circles, too, that policy volatility has become a major obstacle to expanding digital infrastructure. A stable fiscal environment would enable operators and technology firms to undertake multi-year projects without the constant risk of unexpected tax burdens undermining their business models.
At the same time, the sector is lobbying for a reduction in supplementary duties on mobile services and a reassessment of the comparatively high corporate tax rates imposed on mobile-network operators. Industry representatives argue that lowering these burdens would stimulate investment, accelerate network expansion and ultimately generate greater economic activity.
There are also expectations that the budget will contain targeted incentives for local manufacturing. Customs concessions and other fiscal benefits could help strengthen Bangladesh's emerging smartphone- production industry, enabling it to compete more effectively with regional manufacturing hubs such as India and Vietnam.
Simplifying a complex regulatory landscape: Fiscal reforms alone are unlikely to help achieve the desired transformation. Equally important is the government's ongoing effort to modernise the country's telecommunications regulatory's framework.
Recent policy discussions have centred on the Telecommunications Network and Licensing Policy, which seeks to dismantle a regulatory architecture that many businesses regard as outdated and unnecessarily complex. Over the years, multiple layers of licensing requirements have created administrative burdens, increased operational costs and slowed technological innovation.
Bangladesh Telecommunication Regulatory Commission (BTRC) has already proposed a comprehensive restructuring of the licensing regime. The reforms envisage the consolidation of various categories of internet service-provider licences and the gradual elimination of overlapping regulatory structures.
The objective is to create a more streamlined environment that reduces compliance costs and removes uncertainty for investors. Plans to phase out redundant international gateways by 2027 and promote infrastructure sharing among operators are expected to play a central role in this transition. By encouraging both active and passive infrastructure sharing, policymakers hope to lower operational expenses, improve network efficiency and accelerate service expansion across the country.
Expanding connectivity and closing the digital divide: The budget will also be judged on its ability to address persistent concerns regarding connectivity and service quality. Public dissatisfaction with inconsistent internet performance has intensified scrutiny of the government's digital ambitions, placing renewed emphasis on investment in network infrastructure.
Officials have outlined a vision that extends far beyond incremental improvements. The goal is to position Bangladesh among the world's leading telecommunications markets by ensuring reliable and high-quality services throughout the country.
Central to this vision is the accelerated rollout of fifth-generation mobile technology. The government is expected to prioritise the expansion of 5G services to divisional cities, industrial clusters and major transportation corridors, laying the groundwork for advanced digital applications and industrial innovation.
Alongside these efforts, policymakers are pursuing ambitious coverage and performance targets. The long-term objective includes near-universal 4G coverage, widespread access to 5G services and substantial improvements in average broadband speeds. Achieving these goals will require significant investments in both network infrastructure and spectrum resources.
Bridging the digital divide remains another critical challenge. In remote coastal regions and isolated riverine islands where fibre-optic deployment is often economically unviable, satellite-based connectivity is increasingly being viewed as a practical solution. Industry observers expect dedicated budgetary allocations to support such initiatives and ensure that underserved communities are not left behind in the country's digital transition.
Balancing revenue ambitions with long-term growth: Despite widespread optimism surrounding the proposed reforms, questions remain about whether the budget will fully embrace an ecosystem-driven approach to digital development. Many entrepreneurs and investors remain cautious, noting that successive governments have often prioritised short-term revenue collection over long-term sectoral growth.
Ultimately, the forthcoming budget represents more than an annual fiscal exercise. It offers an opportunity to redefine the relationship between the state and one of the country's most strategically important industries.
If policymakers deliver a predictable fiscal framework, simplify regulatory compliance and create incentives for investment in digital infrastructure and local technology production, the upcoming budget could provide the foundation for a more resilient, innovative and globally competitive economy. The decisions being announced will reveal whether the government regards telecommunications and ICT primarily as sources of revenue or as the principal engines of Bangladesh's future growth and transformation.
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