Nearly seven years ago, in 2018, Bangladesh introduced 4G mobile internet services. Three and a half years later, in late 2021, the country launched 5G services on a trial basis amid grand promises of technological transformation.
However, the reality paints a stark contrast: 4G coverage remains inconsistent nationwide, with many remote regions still deprived of reliable connectivity. Meanwhile, the rollout of 5G services has stalled due to dollar shortages and other challenges. This raises a critical question: Should Bangladesh first focus on strengthening 4G infrastructure or proceed with 5G deployment?
Experts say that 5G can revolutionize sectors like healthcare and education, but Bangladesh isn’t ready yet. Without a robust 4G foundation, the 5G rollout will be costly and ineffective.
Bangladesh’s 4G lags due to high regulatory costs, poor investment, and weak regulatory enforcement. Operators prioritize profit over infrastructure, resulting in irregular coverage and inconsistent speeds. Limited competition among telecom companies further reduces the motivation to improve services.
5G, or fifth-generation mobile internet, is fundamentally different and requires new infrastructure requirements. The evolution of mobile networks began in 1979 with 1G, which allowed only voice calls, followed by 2G in 1991, which introduced text messaging.
3G arrived in 2000, enabling calls, texts, and internet browsing, while 4G, launched in 2010, enhanced connectivity by supporting multiple devices and large file transfers. Later, LTE technology was further improved by incorporating mobile broadband and ultra-broadband services for devices like laptops and smartphones.
Benefits of 5G
According to the Global Mobile Suppliers Association (GSA), as of January 2024, a total of 585 operators across 176 countries and territories have invested in 5G technology. Among them, 308 commercial 5G networks are currently operational worldwide. The first country to enable 5G in the world was South Korea.
Experts say the influence of 5G can be seen in nearly every aspect of life—from industry to workplaces and even sports. For example, if 5G were implemented at airports or seaports, it would significantly enhance logistics management by providing real-time updates on cargo and containers.
Beyond logistics, 5G technology has the potential to revolutionize various fields, including virtual reality, high-resolution video streaming, autonomous vehicles, pilot training, health monitoring, firefighting, disaster response, and scientific research. Additionally, 5 G’s ultra-fast mobile internet will empower robots, sensors, and other advanced technological devices.
Experts suggest that to access these benefits, existing network towers must be upgraded to support 5G, and users will need compatible handsets. 5G speeds will depend on the spectrum band used and the level of investment in network infrastructure. Government investment will be necessary to facilitate the implementation of 5G technology.
Current situation
Telecom expert Abu Nazam M. Tanveer Hossain, a public policy advocate, believes 5G has the potential to transform sectors like healthcare and education. However, he says Bangladesh is not yet ready for its rollout.
“We were told that 5G would change everything, but how?” asked Shahadat Hossen, a frustrated small ICT entrepreneur. He lives in Rangabali Upazila of Patuakhali, a southern district in Bangladesh.
He added, “We hear about 5G trials in Dhaka, but here, mobile networks drop during monsoon rains or any bad weather.”
Similar connectivity challenges exist in other remote areas. A survey by the Telecom Regulatory Commission (BTRC) shows that 40% of rural towers do not have fiber-optic connections, causing internet speeds to drop below 2 Mbps.
People are talking about launching 5G in the country, but 4G is still not working well. Many rural, haor (wetland), and char (river) areas cannot access 4G properly. In cities, users get 4G speeds of about 10-15 Mbps. The math is simple: 4G in villages is not profitable. Internet providers do not spend much on broadband or fiber cables there because they fear losing money.
Spectrum license costs are very high in South Asia. Also, weak rules on sharing infrastructure mean big companies like Grameenphone and Robi focus more on cities than on villages.
Experts say that Bangladesh’s 4G lags due to high regulatory costs, poor investment, and weak regulatory enforcement. Operators focus more on profits than improving networks. As a result, coverage is not the same everywhere, and internet speeds are not stable. Since there is less competition, companies have fewer reasons to improve their services.
Mobile operators have addressed concerns about network quality, stating that Bangladesh’s 4G service is not lagging behind that of neighboring countries.
Shahed Alam, Chief Corporate and Regulatory Officer (CCRO) of Robi Axiata Limited said that Bangladesh is not falling behind in 4 G quality compared to countries like India, Pakistan, Sri Lanka, and Nepal.
“The BTRC regularly monitors our network performance, and we are operating within the standard performance parameters for quality of service as defined by the regulator,” he added.
However, operators acknowledge certain challenges, particularly related to infrastructure. Mr. Shahed stated, “A key issue is the absence of robust, quality and cost-efficient fiber, which slowed down the fiberization and hampers network performance. Mobile operators are not primarily responsible for this shortfall. As for fiber, we solely depend on fiber network operators. It could have been better if we could lay our own fiber that can optimize our operational cost and improve subscribers’ affordability.”
Telecom operators point to the National Telecommunications Transmission Network (NTTN) providers as one of the main contributors to the problem. They said that regulatory restrictions, corruption and a lack of competition in the NTTN sector have exacerbated the crisis, limiting fiber network expansion across the country.
BTRC chairman Major General Md Emdad ul Bari (retd) says that 4G quality issues are not due to corruption but are due to weaknesses in infrastructure and investment. A big problem is the limited spectrum. Fiber connections in remote areas are also not strong. He says they are working to improve this.
4G or 5G?
The previous Awami League government promised in its 2018 election manifesto to launch 5G by 2021-23. The plan aimed to introduce 5G in Dhaka first, expand to divisional cities by 2023, and reach union levels by 2026. But, these goals remain unfulfilled. Teletalk conducted initial 5G trials in 2018, followed by further tests by major operators in 2022. Due to Bangladesh’s foreign exchange crisis, the government put Teletalk’s 5G project—estimated at Tk 2.36 billion—on hold. Meanwhile, private operators have also delayed the commercial 5G rollout.
5G can help industries by improving communication among people, machines, and sensors. But Bangladesh is not ready for a full-scale 5G yet. The cost is high, and the necessary infrastructure is not in place. There is also a lack of market demand, as 4G services are still not fully developed. Since 5G equipment is different from 4G and very expensive, a strong market demand must be created before making such a big investment.
“We need to improve 4G first,” says Tanveer Hossain. “Without a strong 4G foundation, introducing 5G would be both expensive and ineffective. To make internet services better and cheaper, we need a strong and affordable transmission network and more competition in fixed data services before moving to 5G,” he added.
Robi’s CCRO, Shahed Alam, states that the company spends around BDT 20 billion each year. He says, “Robi is ready to invest more, but we need a stable and supportive business environment. For this, regulatory restrictions must be eased.”
According to Mr. Alam, the biggest challenges are the transmission network and smartphone affordability. “We need a business-friendly ecosystem to prepare for 5G. Without this, rolling out 5G in Bangladesh will not be sustainable,” he said.
BTRC Chairman Emdad ul Bari acknowledges that 4G expansion is still incomplete, and network quality in remote areas is falling short of expectations. However, he argues that this does not mean Bangladesh cannot move forward with 5G.
“We introduced 4G while 3G was still in operation. Although 3G has been phased out, 2G is still running. This is how it usually happens,” he explains.
Mr. Bari says, “A complete roadmap for 5G has not yet been finalized, but work is underway. Hopefully, within a few months, we will have a clear roadmap for it.”
Persistent pricing issue
Experts and mobile operators believe that the primary reason for high internet prices is excessive taxation. A large portion of internet expenses goes toward paying government taxes, and unless the tax rate is reduced, internet prices are unlikely to decrease.
A 2024 report by the Global System for Mobile Communications Association (GSMA) shows that 41% of city residents and 26% of village residents in Bangladesh use smartphones. Mobile internet usage is 43% in cities and 27% in villages, highlighting a big gap in internet access between urban and rural areas.
An average mobile data user in India consumes three times more data than an average user in Bangladesh.
“Our country is lagging behind its neighbors due to the high cost of mobile data,” according to AKM Fahim Mashroor, CEO of bdjobs.com and coordinator of the Technology Industry Policy Advocacy Platform (TIPAP). Mashroor pointed out that there is a significant contrast in internet usage between urban and rural areas. On average, broadband users in cities consume 150 GB of data per month, while in rural areas, where mobile users dominate, the figure drops to just 6.5 GB.
“The high cost of mobile data is limiting access to essential services such as education and healthcare,” he added.
Telecom expert Mr. Tanveer Hossain says that high prices are driven by monopolistic practices, heavy direct and indirect taxation, and inefficient spectrum use. Meanwhile, poor service quality persists due to underinvestment and a lack of accountability.
More than 40% of the price consumers pay for mobile data goes directly to the government as tax. If taxes were reduced, people could afford more internet, and companies could lower prices.
However, industry experts point out that data pricing depends on 29 different factors. Simply cutting bandwidth costs will not make a big difference, as bandwidth accounts for only 4% of total data costs. Other major expenses include operational costs, spectrum fees, transmission costs, and electricity bills. As a result, telecom operators ask for government policy support in this regard.
Despite high taxes and various challenges, telecom companies claim that internet prices in Bangladesh are still among the lowest in the world. They also say that selling mobile data does not bring much profit. Most of their earnings come from voice calls. However, profits from voice calls are also declining, making it difficult for telecom companies to grow their business.
BTRC Chairman Emdad ul Bari says that it is not always true that internet prices in Bangladesh are very high. “Compared to many countries, our prices are actually low. However, there is still a need to lower costs, and we are working on it. But there are some challenges,” he said.
A top BTRC official, who did not want to be named, said they have been trying to reduce internet prices by 20%. This process started at the end of December last year. Although BTRC is supposed to be an independent agency, it still needs approval from the ministry before making such changes. Due to bureaucratic complexities, there has been no progress even after three months.
Mr. Shahed Alam says that expecting lower internet prices while maintaining a 40% corporate tax on companies and a 39% tax on subscribers is unrealistic.
“If the government wants a 20% reduction in internet prices, certain adjustments must be made. Once such reforms are in place, we will be able to support the government’s vision,” he added.
Bangladesh stands at a turning point in its digital journey. While 5G offers opportunities for growth and innovation, the country still struggles with unreliable 4G. Before moving forward with 5G, it must first build a stronger digital foundation.
Without improved rural connectivity and better policies, the vision of a ‘Smart Bangladesh’ could widen inequality instead of reducing the digital divide.
Shafiqul Islam is a business journalist and contributing writer. He specializes in small business enterprises, startups, investment, credit, sustainability, recycling businesses, and trade bodies.
