Two state-owned telecom operators in Bangladesh—Teletalk Bangladesh Ltd and Bangladesh Telecommunications Company Ltd (BTCL)—have failed to clear dues worth Tk 7,000 crore, with the total potentially exceeding Tk 10,000 crore once VAT and late fees are included. The arrears, which have accumulated over years, cover licence fees, revenue sharing, spectrum charges, fines, VAT, and social obligations.
In contrast, private operators consistently meet their financial obligations, often paying interest on delayed payments. Smaller telecom firms face fines, licence cancellations, or service restrictions if they fall behind—penalties that are rarely enforced against state-run entities.
Breakdown of Liabilities
- Teletalk: Tk 5,800 crore outstanding, including Tk 5,506 crore in spectrum fees.
- BTCL: Over Tk 1,165 crore, mainly from unpaid revenue sharing tied to its international gateway operations.
BTRC has repeatedly issued reminders, most recently on June 24, 2025, for BTCL and June 2, 2025, for Teletalk. The regulator has escalated the matter to the Posts and Telecommunications Ministry, which oversees these firms.
Teletalk argues that, as a state-owned company, its spectrum investment should be treated as government equity, and a proposal has been submitted to the Ministry of Finance to convert dues into equity.
Uneven Competition
Experts warn that the preferential treatment distorts market competition.
- Khondaker Golam Moazzem of CPD said the unpaid dues question whether these firms could survive in a competitive market, noting their reliance on government privilege.
- Abu Nazam M Tanveer Hossain, telecom analyst, argued that continuing to subsidise Teletalk despite its inefficiencies and low market share serves little purpose. He suggested reallocating underutilised spectrum to stronger operators and restructuring or partially privatising Teletalk to improve efficiency.
BTRC chairman Md Emdad Ul Bari acknowledged the issue but said the regulator requires ministry approval for any enforcement actions, including sending show-cause notices, as the boards of these firms are chaired by ministry officials.
The situation underscores the challenges of ensuring fair competition and revenue collection in Bangladesh’s telecom sector, with state-run entities enjoying privileges that private operators cannot.
