Bangladesh has made big strides in bringing its people online. Over 124 million Bangladeshis are subscribed to the internet as of April 2025 and over 135 million use mobile phones. Working remotely, online learning, and digital payments are all the rage.
But behind the headlines is a dismal reality: Our telecom sector still has to function with hands behind its back for the most part because the Bangladesh Telecommunication Regulatory Commission (BTRC) looks to have no autonomy nor money.
BTRC was established more than two decades ago to make our telecom industry competitive, even, and forward-looking. But it’s been held back by outdated laws, a lack of skilled personnel, and too much political interference.
The result is a slow-moving regulator unable to respond to the rapidly changing world of mobile and internet technology.
One of the most obvious problems is that our spectrum prices are through the roof. Operators pay about $1.10 per MHz per person, which is more than five times what their Indian counterparts pay. Companies don't want to buy what they need to provide faster, more reliable service when spectrum costs this much.
This makes networks crowded, slows down the internet, and drops calls, which are all bad for everyone, but especially for rural and low-income users who already have trouble getting online.
Another big problem is taxes. A recent GSMA report says that telecom companies pay more than 54% of their revenue in taxes, which is one of the highest rates in the world. This is because of VAT, extra duties, and surcharges. These excessive taxes do not only punish operators but also punish consumers by raising call and data prices more than needed. Bangladeshis pay around 1.5% of their average salary per month to buy 1GB of mobile data, which is five times higher than Indians, who pay less than 0.3% of their income.
Then there's the issue of infrastructure. Countries all over the world are getting smart about saving money and speeding up connections by getting telecom companies to share towers and fiber networks. But in Bangladesh, operators are hesitant to work together because there isn't a strong regulator who can set and enforce fair sharing rules. Instead of sharing, they build more towers and run more cables, which wastes money and time and makes coverage worse, especially in rural areas where it's most needed.
Investors are also discouraged by a weak regulator. The telecom industry has attracted $2.4 billion in foreign investment since 2015 and already accounts for approximately 2.5% of our GDP. But a lack of transparency, abrupt fluctuations in licensing charges, and conflicting policies have turned Bangladesh into a riskier option for investors who otherwise can upgrade our infrastructure.
To get our networks ready for 5G and close the digital divide, experts predict that we will need to invest an additional $1.5bn over the next five years. However, investors will avoid the market if they don't trust the regulatory environment.
In actuality, the BTRC lacks the autonomy and resources necessary to stay up to date with the current telecom environment. The Bangladesh Telecommunication Act of 2001, which predates smartphones, 4G, and the widespread use of the internet, is now utterly out of date. The BTRC lacks the authority to act independently of political pressure or to swiftly adopt new technologies.
This law must be updated. The regulator should have the power and autonomy required by a contemporary legal framework to supervise licensing, effectively manage spectrum, and settle disputes in a fair and open manner.
The BTRC's funding needs to be improved as well. As it now relies on an annual government budget, its agenda can shift with political winds. Other countries give their regulators a small proportion of licensing or spectrum fees so that they can invest in improved watchdog tools, employ specialists, and take a long-term view. If Bangladesh desires a world-class regulator, it must do the same.
Transparency is another key element. Spectrum auctions and licensing decisions in Bangladesh are much too often made behind closed doors, with operators and the general public left in the dark. Trust is broken when rules are opaque and explanations are not provided for decisions.
To keep everyone from operators to everyday users informed about what is happening and why, the BTRC should release guidelines, conduct open hearings, and release reports on its decisions.
Both consumers and industry need a more efficient BTRC. Internet and mobile consumers all over the country perennially complain of bad service quality, problems in billing, and sudden price rises.
Were it more independent, the BTRC would be able to come down hard on operators who do not deliver services of reasonable quality, protect consumers from unwarranted bills, and hold businesses accountable for their advertisements claiming quality. All Bangladeshis should be able to experience faster, more reliable internet and fewer nasty surprises on their monthly bill.
If we are to realize the vision of a digital economy for all citizens, not only the affluent or urban dwellers, these upgrades are necessities, not luxuries. The whole economy relies on good, affordable connectivity. This is true whether farmers are selling products via mobile apps, students are attending classes online, or small businesses are selling products online.
But the status quo will not take us there. Bangladesh's telecom industry has huge potential to propel economic growth, to create jobs, and to pull millions out of poverty. But if we do not give the BTRC the authority to make independent, bold decisions, that potential will never be tapped.
Bringing the telecom law up to date, making the regulator financially independent, and tweaking the commission's mandate will not solve all of the issues overnight. However, these adjustments are the cornerstone upon which we must construct a telecom market that is fair, competitive, and prepared for the future.
Now is the moment to act. Every month that we wait, more Bangladeshis are harmed by inconsistent connections and excessive prices as our regional competitors gain ground. The final missing piece is the BTRC, and it needs to be empowered if Bangladesh is going to spearhead a digital revolution.
We have to provide our telecom regulator with the authority, financing, and equipment it requires so that all Bangladeshis can enjoy low-cost, high-quality digital services and our country can fulfill its potential for a smart, connected future.