Teletalk, the state-owned mobile operator, has completed 20 years of operation but continues to lag behind private competitors in Bangladesh.
The company has yet to achieve full 4G network coverage, while network issues persist, with subscriber numbers falling, officials said.
One of the major setbacks for Teletalk is the lack of sufficient battery backup for its towers, according to subscribers.
When there is a power outage, customers in 830 tower areas lose network access. If power remains unavailable for more than an hour, around 40% of Teletalk’s towers fail to provide connectivity.
The company currently has only 5,661 base transceiver stations (BTS), whereas it requires over 15,000 for adequate coverage, according to the officials.
Teletalk was established in 2004 as the country’s only state-owned mobile service provider, aimed at ensuring telecommunication services and fostering healthy competition in the sector.
Despite significant government support, the operator has struggled to compete effectively. Its subscriber base now stands at only 6.5 million.
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Teletalk officials claim that investment constraints have hindered their ability to stay competitive. While private operators have invested Tk 30,000-40,000 crore in the sector, Teletalk’s total investment stands at only Tk 5,000 crore.
BTS and Subscriber Growth Targets Unmet
According to Teletalk’s network expansion plan, the company aims to establish 5,850 BTS stations by 2019-20, 9,510 by 2020-21, 12,510 by 2021-22, 13,310 by 2022-23, and 15,510 by 2023-24. As of 2024, these targets remain unmet, with only 5,661 BTS stations in operation.
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Similarly, Teletalk had set ambitious subscriber growth targets: 7 million in 2020, 10 million in 2021, 15 million in 2022, and 20 million in 2024. But the current subscriber count remains at 6.5 million.
Customer Service Complaints
Subscribers have voiced dissatisfaction with Teletalk’s services.
Nurul Islam Khokon, a Teletalk user, reported difficulties in obtaining a replacement SIM card after his phone was snatched. “I was told to come back in a few days due to technical issues. If it takes so long for a simple SIM replacement, how can they ensure good customer service?” he asked.
Many users complain about poor 4G network coverage in rural areas, frequent call drops and unreliable service.
Teletalk’s Response
Teletalk Bangladesh Limited’s Managing Director Nurul Mabud Chowdhury acknowledged the challenges but outlined initiatives to expand services.
He announced a plan to distribute SIM cards through post offices across the country, with a pilot project already launched in Rajshahi. Customers will also have the option to order SIMs online for home delivery.
Currently, Teletalk has around 70-80 dealers managing 4,000-5,000 retailers and 90 customer care centres.
But the company admits that retailers are struggling to reach customers effectively. To address this, performance-based incentives will be introduced for dealers and retailers.
Expansion Plan
Addressing network issues, the MD said that a Tk 50 crore project had been approved in September 2024 to enhance power backup for 1,000 sites.
This initiative is expected to be completed by June 2025, ensuring uninterrupted service even during power outages.
Teletalk is also working on a 5G project involving 3,000 BTS installations—1,000 for new 4G sites and 2,000 for 4G upgrades. So far, 2,000 sites have been upgraded, and the remaining 1,000 will be completed soon.
Another 3,000 BTS sites are planned, with 700 to be built by Teletalk and 2,300 through infrastructure sharing.
A separate Government-to-Government (G2G) project with China is in progress, under which 2,000 additional BTS sites will be established.
The MD expects approval from the Executive Committee of the National Economic Council (Ecnec) soon.
Challenges
Despite these efforts, Teletalk still needs 5,000 more BTS stations to achieve full network coverage.
The company is developing a project for these, including 1,600 sites dedicated to 5G, with feasibility studies already conducted through Buet. The proposal has been sent to the Planning Commission and awaits ECNEC approval.
When asked about competition with private operators, the MD cited investment constraints as a major challenge. “Grameenphone has invested Tk 40,000 crore, while the government has provided only Tk 3,500 crore to Teletalk, and we have contributed around Tk 1,500 crore ourselves. Competing with such a large investment gap is difficult,” he said.
He mentioned bureaucratic delays in project approvals. “It takes two years to approve a project and another two to three years for implementation, meaning we need five years to complete a project, whereas private companies can execute similar initiatives within months.”
Future Outlook
Teletalk was a pioneer in launching 3G services ahead of private operators, but it fell behind in rolling out 4G.
The MD expressed the hope that the ongoing projects would enable Teletalk to compete effectively in the 4G sector by 2026.
While acknowledging that Teletalk still has a long way to go, he pointed out that customer numbers remained stable, unlike private operators who lost 49,000 subscribers in a recent period. “We have 6.5 million subscribers, with most receiving 4G services, though some areas still experience 3G connectivity issues,” he said.
Teletalk currently employs around 500 staff members, with an additional 1,000 outsourced workers. Compared to private operators, it has fewer resources and lower employee salaries, which also affects its ability to compete.
The MD reaffirmed that if all ongoing projects are completed by 2026, Teletalk will be in a much stronger position to compete with private operators.
He, however, said sustaining competitiveness in the telecom market remains a challenge without significant investment.