After years of regulatory uncertainty, shrinking margins, and fading investor confidence, Bangladesh’s telecom industry stands at a critical crossroads. Grameenphone CEO Yasir Azman believes 2026 could become a decisive “reset year” if long-standing structural challenges are finally addressed.
In an interview with The Business Standard, Azman described 2025 as a transition year rather than a lost one, laying the groundwork for recovery and reform.
“I look at things through an optimistic lens,” he said. “Despite the macroeconomic slowdown and many challenges, I still see 2025 as a year of progress, a year that prepares us to move into a better, more hopeful 2026.”
Azman said one of the most significant developments in 2025 was the revival of regulatory dialogue after years of stagnation.
“For years, many issues remained stuck. But in 2025, we finally saw movement, some big, some small, but together they matter,” he noted.
He pointed to renewed momentum on telecom policy reform, readiness for spectrum auctions, and long-awaited discussions on low-band spectrum, a critical resource for improving network quality and enabling 5G.
“There has also been meaningful discussion around quality-of-service regulations,” he said, adding that amendments to penalty frameworks are moving toward a more practical direction, allowing operators to invest more in network improvement rather than excessive compliance.
Azman also highlighted progress on long-delayed service innovations. One is handset locking, a global practice that allows operators to subsidize smartphones and make them affordable.
“For 28 years of telecom in Bangladesh, handset locking was never allowed, despite being a global norm,” he said.
He also cited new flexibility in data product offerings. Previously, operators were limited to around 40 data products despite serving more than 85 million mobile internet users.
“In a world moving toward hyper-personalisation, that restriction has now been lifted,” he said.
Clarifications on Voice over WiFi (VoWiFi) and international roaming billing in local currency were described as major breakthroughs, particularly for students and small businesses.
“Roaming is not a luxury. In a world driven by digital verification and OTPs, not having roaming becomes extremely disruptive,” he said.
Looking ahead, Azman emphasized that fibre infrastructure will be central to next-generation connectivity.
“Without fibre, you cannot deliver the data experience customers expect today, and you certainly cannot roll out 5G effectively,” he said.
He also highlighted structural imbalances between mobile operators and ISPs, noting that ISPs face a tax burden of around 5%, while mobile operators pay close to 55%, allowing ISPs to undercut pricing and absorb high-volume usage.
Grameenphone’s 2026 strategy is framed around three lenses: customers, organisational capability, and technology.
“The question is no longer just connectivity,” Azman said. “It’s about securing customers’ digital lives, protecting privacy, transactions, and trust.”
Cybersecurity, cloud services, connected devices, and enterprise solutions will increasingly define the operator’s role, supported by ecosystem partnerships and responsible AI adoption.
The second focus is people.
“Are we equipped as an organisation? Are our employees ready for a more complex digital world?” he asked.
The third is technology itself.
“Advanced networks, automation, and AI-driven operations will define competitiveness,” he said.
Despite optimism, Azman was blunt about the two largest barriers: excessive taxation and unresolved financial disputes.
“Unless these are resolved, investment appetite will remain very limited,” he warned.
Operators face a 40% corporate tax, 15% VAT, 20% supplementary duty, revenue sharing, spectrum fees, and multiple social obligations.
“I have not found another country close to Bangladesh in terms of spectrum cost,” he said.
More damaging is the accumulation of audit disputes spanning nearly three decades.
“In 28 years, not a single year’s audit dispute has been fully resolved,” he said. “All operators carry massive disputed liabilities.”
He warned that data services are currently subsidized by declining voice revenues, making long-term profitability uncertain.
Azman called for international arbitration as a pragmatic solution.
“If disputes remain in court for another 10 years, followed by another 10 years of interest, no telecom business will be viable,” he said.
He welcomed recent dialogue with regulators, calling it the first structured engagement on dispute resolution in years.
He also criticized Significant Market Power (SMP) rules that slow innovation.
“Every product requires lengthy approvals, sometimes taking years,” he said, questioning why profitability remains elusive despite massive customer bases.
Azman stressed that telecom reform is not just an industry issue.
“Healthcare, education, financial inclusion, none of it works without strong connectivity and continuous innovation,” he said.
Calling 2026 a “reset moment,” he urged step-by-step reform in taxation, disputes, competition, and pricing.
“If investment returns,” he concluded, “telecom can again become a powerful engine for national progress.”
