Bangladesh remains attractive for investment, but policy predictability key: Axiata CEO

"Yes, Bangladesh remains an attractive market with strong fundamentals, favourable demographics and a growing digital economy," he said while talking to BSS in an interview here recently.

Axiata, a Malaysian telecoms and technology group, is the parent company of mobile operator Robi and tower company Edotco, which owns and manages approximately 54,000 towers across Southeast and South Asia. The group says its portfolio serves more than 190 million customers.

The CEO said Axiata has continued to invest in Bangladesh through Robi for nearly three decades, reflecting its long-term confidence in the country's potential and future growth. 

As a long-term investor, he said, Axiata is encouraged by the efforts being taken to strengthen the digital economy and improve the overall investment environment.

"At the same time, investors need policy predictability, a sustainable industry cost structure and the ability to earn reasonable long-term returns," he said, adding that progress in these areas will determine how effectively the market can attract the next wave of digital infrastructure investment.

On spectrum, Nik Rizal Kamil said it is a critical national resource but also one of the largest investments telecom operators make. 

A balanced approach, he said, will enable operators to allocate more capital towards network expansion, innovation and improving customer experience.

Referring to spectrum renewals, he said the objective should be to strike the right balance between government revenue considerations and the industry's ability to invest in future networks and innovation. 

A more sustainable approach to spectrum pricing can help accelerate investment in connectivity, improve service quality and support broader digital transformation objectives, he said.

He said the greatest beneficiaries of such an approach would be consumers, businesses and the wider economy.

The Axiata chief welcomed the government's decision to remove the SIM tax, describing it as a positive step that supports digital inclusion and sends a strong signal to investors. 

Together with broader reforms being considered across the sector, he said, it reinforces Axiata's confidence in Bangladesh's long-term outlook.

He said international investors generally look for predictability, transparency, consistency and attractive long-term returns regardless of the market. 

Continued alignment with global best practices in areas such as spectrum management, taxation, regulation and ease of doing business would further enhance competitiveness and attract additional investment into the sector, he said.

"Our message is simple: Bangladesh has tremendous potential, and we remain confident in its future," he said.

Axiata is an active asset manager with operations and investments across Southeast and South Asia, and its key markets are Malaysia, Indonesia, Sri Lanka, Bangladesh, Cambodia, Pakistan and the Philippines. 

Its core telecommunications portfolio comprises Celcom Digi in Malaysia, XLSMART in Indonesia, Dialog in Sri Lanka, Robi in Bangladesh and Smart in Cambodia. 

The group has controlling stakes in Dialog, Robi and Smart, while Celcom Digi and XLSMART are jointly controlled entities.

On Robi, Nik Rizal Kamil said the operator is well poised as the market leader in the data business, which he described as the outcome of focused investment in 4G from the very beginning in 2018, when it was launched in Bangladesh.

He said Robi is eager to maintain this lead by ensuring 4G coverage and capacity throughout the country. Whether it is 4G or 5G, the focus will remain on raising data speed for customers, he added.

On 5G, he said Bangladesh is still at an early stage of the journey. While progress has been made, broader ecosystem readiness remains important, including devices, applications, fibre infrastructure and compelling use cases, he said. 

He said 5G should ultimately be demand-driven and that continued collaboration between industry, government and regulators will be important.

Describing Axiata as a Smart Asset Manager, he said the group creates value through disciplined capital allocation, operational excellence, governance, AI adoption and active portfolio management. 

For Robi, this means access to regional talent, proven operating models, AI capabilities and successful initiatives from across Asia, he said.

He said cross-company taskforces within the group are working on priority areas such as AI-native customer lifecycle management, AI-enabled customer experience, data monetisation and autonomous networks, and Robi benefits directly from these initiatives.

Nik Rizal Kamil said Robi's data leadership serves as the building block for its emergence as a TechCo, with cloud, data centre and IoT businesses hinging on how capably the company leverages AI. 

He said AI is already being applied within Robi in areas such as network planning, customer engagement, operational efficiency and business analytics, and its role is expected to expand significantly over time.

Beyond traditional telecoms, Axiata has developed a technology portfolio comprising Boost, ADA and Axonect. Boost is the group's fintech and digital financial services business and includes Boost Bank, operated with RHB Banking Group in Malaysia. 

ADA focuses on data analytics and artificial intelligence, while Axonect provides software and digital solutions. 

The group's infrastructure portfolio also includes Linknet in Indonesia, which focuses on wholesale fibre and Fibre-to-the-Home connectivity.

Under Axiata28: Advancing Asia, he said, the group's ambition is to realise Robi's full potential as a leading digital connectivity and technology player while continuing to create long-term value for customers, the country and shareholders. 

The strategy focuses on portfolio optimisation, disciplined capital allocation, AI-driven operational efficiency and stronger returns, as the group transforms from a connectivity-led telecom group into an increasingly technology-oriented business, reports BSS.