Report

The Bangladesh Telecom Market size is estimated at USD 4.87 billion in 2024, and is expected to reach USD 5.86 billion by 2029, growing at a CAGR of 4.31% during the forecast period (2024-2029).

Bangladesh is evolving rapidly as Vision 2041 becomes a reality. Bangladesh's viewpoint plan is to become an upper-middle-income country by 2031 and a high-income country by 2041. The goal is to be applied mainly through digital and internet technologies. Digital inclusion is essential to this transformation, and an inexpensive and dependable connection is necessary for the government to achieve its Vision 2041 goals.

Key Highlights
-The fifth generation (5G) age of telecommunication is progressively growing in Bangladesh. Low latency, faster download speeds, improvements in virtual reality, augmented connectivity for billions of devices, artificial intelligence, and the Internet of Things are among a few things 5G can provide in Bangladesh. These developments can potentially transform the lifestyle of people throughout the country. Innovative healthcare, improved logistics, and modernized mining are all expected to emerge from its utilization.
-The telecom industry in the country is dominated by market players such as Robi Axiata, Grameenphone, and Banglalink. The telecom industry has seen robust growth with augmented mobile penetration, a rising number of internet users, and expanding 4G coverage. Industry partnerships and regulatory initiatives endure to drive advancements, further increasing development in the sector.
-Fixed broadband subscriptions in Bangladesh are expected to grow owing to the rising demand for high-speed internet access, driven by remote work, rising digitalization, the growing popularity of streaming services, and online education. Additionally, government investments and initiatives in increasing broadband infrastructure can contribute to fixed broadband subscription growth by making it more affordable and accessible for a larger population.
-As established by the planning ministry officials, the Government of Bangladesh is moving forward with the rollout of mobile internet services such as fifth-generation (5G) through state-run network provider Teletalk. At first, the 5G network is anticipated to be only accessible at important commercial and governmental institutions run by the two Dhaka municipal organizations.
-Connectivity has become crucial for social activity and sustaining the economy after the COVID-19 pandemic in Bangladesh. Telecommunication is vital in the country for enabling educational institutions and companies to constantly be active and provide people a way to work, socialize, and access several life-improving services. Mobile service suppliers in Bangladesh have retorted to the difficulties initiated by the pandemic by assuring that mobile technology is used effectively to maintain a normal life.


Telecommunication in Bangladesh Market Trends

Growth Trends of 5G in Bangladesh are Expected to Drive Market Growth


- Broadband services are witnessing a transformative phase driven by the deployment and adoption of 5G technology. As the world transitions to a new era of connectivity, 5G has emerged as an opportunity in Bangladesh, assuring superior network performance, enhanced user experiences, and a catalyst for digital transformation across various industries.
- The potential to deliver significantly enhanced network performance acts as a potential need in the country. As a result, 5G technology could boost data transfer rates exponentially higher, reduce latency, and increase network capacity compared to its predecessors. This translates to faster internet speeds and smoother connectivity, meeting the ever-growing demands of data-dependent applications, video streaming, and emerging technologies like AR, VR, etc.
- In addition to this, mobile broadband services are becoming more advanced globally owing to 5G installations. Consumers in Bangladesh can experience faster download and upload speeds, seamless video streaming, and improved mobile application performance. As data consumption continues to rise, 5G's increased capacity ensures that the network can handle the growing demand for data-intensive services, allowing users to stay connected and productive on the go.
- Bangladesh entered the 5G era with limited offerings, but there have been some recent developments. In April 2023, Teletalk Bangladesh signed an agreement with Huawei to upgrade its coverage in rural areas and ensure 5G readiness. Under the deal, Huawei will provide Teletalk with new 4G sites, a core network, an IP network, and charging and billing system modernization solutions.
- Overall, the race to deploy 5G technology is encouraging substantial investments in Bangladesh's broadband infrastructure. Telecom operators and stakeholders must invest in expanding 5G-ready networks, including deploying small cells, advanced antennas, and fiber-optic backhaul solutions. This infrastructure development benefits 5G services and can further improve overall network performance and coverage.
- 3G and 4G mobile networks remain dominant in Bangladesh. While 4G services were launched only in 2018, and adoption is expected to develop, operators have started 5G services trials (Robi, TeleTalk, and Grameenphone), which hold the potential of a step change in the mobile experience quality. Moreover, 5G and 4G subscribers are growing steadily. For instance, according to the GSMA, 4G subscribers are anticipated to grow from 46% in 2022 to 73% in 2030, and 5G subscribers are projected to reach 22% by 2030 in the country.


The Data and Messaging Services Segment is Expected to Hold Significant Market Share


- Data and messaging services are the type of telecommunication services the market vendors provide, including fixed internet services, mobile data, and messaging facilities. The country has been registering an increase in the 5G adoptions and digitalization of business processes, creating an opportunity for telecom companies to offer high-speed data services and driving market growth in the country.
- Bangladesh possesses a significant number of mobile internet subscribers. Improved connectivity fosters communication, facilitates information exchange, and fuels data-dependent services. According to the Association of Mobile Telecom Operators of Bangladesh (AMTOB), the total number of mobile internet subscribers reached 118.96 million at the end of November 2023.
- The expansion of tower networks is a key driver in enhanced data and messaging services, enabling better connectivity and contributing to the growth of the telecom market. According to the Bangladesh Telecommunication Regulatory Commission (BTRC), the total number of telecom towers in November 2023 was 43,886.
- Bangladesh is experiencing a surge in information availability. According to the Bangladesh Bureau of Statistics, 37% of people aged 18 and above in the country are Internet users. Social media usage has been increasing in the country, which includes the usage of Facebook, Instagram, WhatsApp, YouTube, and TikTok. This is fueling the usage of data services by telecom service providers because users need internet connectivity to access these platforms.
- In October 2023, Robi Axiata Limited (Robi), the digital service provider of Bangladesh, became the nation's first operator to launch Rich Business Messaging (RBM), a messaging service by Google that allows businesses to provide rich, interactive messages to their customers.
- The digital transformation of businesses, the growth in the use of cloud-based enterprise solutions, the deployment of 5G and fiber optics across the country for high-speed internet, and attractive data packages by vendors are accelerating the growth of data and messaging services in the telecommunication market.


Telecommunication in Bangladesh Industry Overview

The Bangladeshi telecom market is consolidated in nature. The major players in the market are Grameenphone Ltd, Robi Axiata Limited, Banglalink Digital Communications Limited, Teletalk Bangladesh Ltd, and Bangladesh Telecommunications Company Limited (BTCL). Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.

In December 2023, Grameenphone partnered with Ericsson to improve customer experience. With the partnership, Grameenphone now has a voice Charging Control Nodes (CCN) operational pool, providing its customers with an enhanced experience. This technology is used for managing and controlling the charging and billing of services. This technology distributes network traffic equally for uniform network utilization and ensures a steady service level, ensuring customers have seamless network access and uninterrupted connectivity.

In December 2023, Banglalink launched its latest postpaid offering, SELECT, mainly designed for postpaid customers who want to remain connected with an overall hassle-free mobile connection. With a call rate of 65 paise per minute, this package would allow users access to a broad and diverse range of digital services and exclusive loyalty offers. Furthermore, the SELECT postpaid package provides flexibility, enabling customers to choose between three bundles as well as a non-bundle option based on their usage and preference patterns. This versatility also ensures that Banglalink users can customize their subscriptions in order to align with their unique needs, making the SELECT package an inclusive and user-friendly alternative.

Additional Benefits:

- The market estimate (ME) sheet in Excel format
- 3 months of analyst support