Teletalk Struggles to Compete with Private Operators After 20 Years

While private operators have embraced full 4G coverage, Teletalk has not yet achieved nationwide 4G service, and persistent network issues have contributed to a slow decline in its customer base. Subscribers also complain about frequent disruptions and poor coverage, particularly in rural areas.

A significant concern for users is the lack of reliable power backup at Teletalk’s tower sites. During power outages, approximately 830 tower locations lose service, and if power is down for more than an hour, up to 40% of Teletalk’s towers are unable to maintain connectivity. With only 5,661 base transceiver stations (BTS) in operation, the company is far from meeting its coverage needs, which according to experts, should exceed 15,000 BTS to ensure adequate nationwide service.

Teletalk, launched in 2004 as Bangladesh's sole state-owned telecom provider, was intended to promote equitable service and encourage healthy competition within the sector. However, despite substantial government investment, it continues to face tough competition from private players. As of now, Teletalk’s subscriber count remains stagnant at 6.5 million, significantly lower than its ambitious target of 20 million by 2024.

Investment Gap and Infrastructure Challenges

One of the key reasons for Teletalk’s struggle is its limited investment in infrastructure. While private operators such as Grameenphone have invested over Tk 40,000 crore in the sector, Teletalk’s total investment stands at a fraction of that—approximately Tk 5,000 crore.

In its network expansion plans, Teletalk set targets to install thousands of additional BTS stations. However, these goals have not been met. The company had planned to establish 5,850 BTS stations by 2019-2020, 9,510 by 2020-2021, and 15,510 by 2023-2024, but as of 2024, only 5,661 BTS sites are active.

Customer Complaints and Service Challenges

Customer service complaints are another major issue. Users like Nurul Islam Khokon report difficulties even with simple tasks like obtaining a replacement SIM card. “I was told to come back in a few days due to technical issues. If it takes so long for something as simple as a SIM replacement, how can they provide good service?” he questioned.

Subscribers have also raised concerns about the poor quality of 4G coverage in rural areas, with frequent call drops and unreliable service further alienating users.

Teletalk’s Response and Future Plans

Despite these setbacks, Teletalk’s Managing Director, Nurul Mabud Chowdhury, remains optimistic. He outlined several initiatives aimed at improving service delivery and expanding coverage. The company has launched a pilot project in Rajshahi to distribute SIM cards through post offices, and customers can now order SIM cards online for home delivery.

Teletalk is also addressing network issues with a Tk 50 crore project to enhance power backup for 1,000 sites. This project is expected to be completed by June 2025, which will help reduce service disruptions during power outages.

Additionally, Teletalk is working on expanding its 5G network, with plans to install 3,000 new BTS sites, including 2,000 for 4G upgrades and 1,000 for new 4G sites. A Government-to-Government (G2G) project with China will also contribute 2,000 new BTS sites.

Investment and Bureaucratic Challenges

However, Teletalk continues to face significant hurdles due to limited funding and bureaucratic delays. Chowdhury pointed out that while private operators have made substantial investments, Teletalk has only received a fraction of the resources. “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 also noted that bureaucratic delays in project approvals further exacerbate the company’s challenges, as it can take up to five years to complete projects that private operators can execute in a matter of months.

Looking Ahead

Despite the ongoing challenges, Chowdhury is hopeful that Teletalk will be able to compete effectively in the 4G market by 2026. “We have 6.5 million subscribers, and while some areas still experience 3G coverage, most of our customers are on 4G,” he said. Teletalk also faces staffing challenges with a much smaller workforce compared to private competitors, and lower employee salaries have further strained the company’s ability to compete effectively.

While Teletalk was a pioneer in introducing 3G services ahead of private operators, it has fallen behind in the rollout of 4G. The MD remains optimistic that the company’s ongoing projects will strengthen its competitive position in the coming years. However, he warned that sustaining competitiveness in the telecom market would remain a challenge without significant investment and a more streamlined approval process.

As the competition in Bangladesh’s telecom market intensifies, Teletalk’s future success will largely depend on its ability to overcome infrastructure gaps, improve customer service, and secure the investment necessary to level the playing field with its private counterparts.