Speakers at a seminar have stressed that withdrawing the voice floor price could make mobile services more citizen-friendly, but cautioned that a gradual and balanced approach is needed to avoid market distortions and revenue shocks.
The observations came at a seminar titled "Proposal to Withdraw Voice Tariff Floor: What the New Government Should Do to Make Mobile Services Citizen-Friendly", held on Sunday at the BDBL Building in Kawran Bazar in the capital.
The event was organised by Voice for Reform and the Technology Industry Policy Advocacy Platform (TIPAP).
Presenting the keynote paper, telecom expert Mahtab Uddin Ahmed argued that the minimum call rate-set at Tk 0.45 per minute since August 2018-has outlived its relevance in the current data-driven landscape.
Introduced to safeguard operators' investments during the 4G rollout, the measure initially helped ensure revenue stability and rapid cost recovery.
Citing Bangladesh Telecommunication Regulatory Commission (BTRC) data, he noted that the policy boosted operators' combined monthly revenue by around Tk 3.87 billion at the time. Even now, operators maintain EBITDA margins exceeding 50-60 per cent, reflecting sustained profitability.
However, Ahmed contended that such assured earnings from voice services have reduced incentives for operators to expand internet access and promote smartphone adoption.
He proposed a phased withdrawal of the floor price, suggesting a reduction of Tk 0.15 per quarter from the second quarter of 2026, bringing the rate to zero by year-end.
This, he said, could raise internet penetration from 44.5 per cent to between 60 and 65 per cent, or even up to 75 per cent in the longer term, alongside generating new employment opportunities in the digital economy.
Ahmed also highlighted structural imbalances in the sector.
Despite a 142 per cent increase in spectrum allocation-from 130 MHz in 2018 to 315 MHz in 2026-only a small portion is now used for voice services.
He added that Bangladesh remains one of the few countries still maintaining a voice floor price, whereas countries such as India, Nigeria, Pakistan and Sri Lanka have already liberalised their markets.
Nevertheless, concerns were raised about the potential risks of an abrupt policy shift.
Shahed Alam, Chief Corporate and Regulatory Affairs Officer of Robi Axiata, warned that a sudden reduction in the floor price could lead to a price war in voice services, prompting operators to compensate by increasing mobile data tariffs by as much as 59 per cent.
He noted that revenue from voice services currently subsidises data expansion, contributing to increased device usage-now exceeding 70 per cent on operator networks. Alam emphasised the need for a comprehensive cost study before any decision is taken, pointing out that more than Tk 56 out of every Tk 100 recharge goes to the government in taxes and levies, while operators face an effective tax burden of up to 70-72 per cent on profits.
He also cautioned that removing the floor price without adequate safeguards could result in significant revenue losses for the government-estimated at around Tk 60 billion-and potentially lead to market concentration.
Echoing the need for caution, Mohammad Farhan Alam, Deputy Director of BTRC, said that while withdrawing the floor price could benefit consumers through more flexible and bundled offerings, it should be implemented gradually. He warned that without careful regulation, the market could drift towards monopoly or oligopoly conditions.
Farhan noted that no comprehensive cost review has been conducted since 2018, making such an assessment urgently necessary.
Speakers at the seminar also drew attention to persistent digital inequality. Although SIM penetration exceeds 100 per cent, unique mobile subscribers account for only about 55 per cent of the population, and internet usage stands at just 44.5 per cent-well below regional peers. Smartphone penetration remains uneven, particularly in rural areas.
Hossain Sadat, President of the Institute of Chartered Secretaries of Bangladesh (ICSB), said that despite short-term revenue concerns, a reduction in call tariffs could ultimately benefit all stakeholders by expanding the user base and narrowing the digital divide.
Participants further recommended complementary measures, including tax reductions on affordable smartphones, targeted subsidies for disadvantaged groups, and stronger regulatory oversight to ensure fair competition.
The seminar was moderated by Fahim Mashrur, co-convener of Voice for Reform.
bdsmile@gmail.com
