In Bangladesh’s telecom sector, the multinational company Grameenphone Limited has long held a dominant position. Economists call this situation a monopoly, where a single company controls the entire market. In the UK, if a company holds 25 percent of the market share, it is considered a monopoly. In Bangladesh’s telecom sector, the Bangladesh Telecommunication Regulatory Commission (BTRC) considers any company holding 40 percent or more of customer base, revenue, or spectrum allocation as having significant market power, or significant market power (SMP). Based on this, Grameenphone was declared an SMP a few years ago and was subjected to various restrictions. Despite that, the regulatory body has not been able to reduce the multinational’s monopoly in the telecom sector. Instead, Grameenphone has leveraged its dominant position in the market to further inflate its revenue and profits. Meanwhile, competing companies struggle to survive amid unfair competition.
Currently, four mobile operators—Grameenphone, Robi, Banglalink, and the state-owned company Teletalk—serve nearly 190 million customers in the country. The total business size in this sector is BDT 322.98 billion, with Grameenphone holding a clear monopoly. By the end of 2024, the company’s total revenue reached BDT 158.45 billion, which accounts for nearly 50 percent of the country’s mobile telecom sector. During the same period, Robi Axiata earned BDT 99.5 billion, Banglalink BDT 59.78 billion, and Teletalk only BDT 5.52 billion.
Last year, Grameenphone made a post-tax net profit of BDT 36.31 billion. In the same period, Robi earned BDT 7.03 billion. This means Grameenphone’s net profit was more than five times that of Robi. This information comes from an analysis of financial reports by BTRC and the companies involved.
To promote competition and order, BTRC declared Grameenphone an SMP operator in February 2019. Several restrictions were imposed on the operator under this declaration. However, even after half a decade, the telecom market has seen little change. Nearly half of the market remains under Grameenphone’s control. That is why the regulatory authority BTRC has taken the initiative to evaluate the effectiveness of the SMP designation.
To control the monopoly and make the telecom sector more competitive, work on SMP regulations began in 2011. Following this, in November 2018, the “Significant Market Power Regulation-2018” was issued under the Telecommunications Regulatory Act. According to this regulation, if any mobile operator holds 40 percent market share in any one of three indicators—customer base, revenue, or spectrum allocation—BTRC has the authority to declare that operator as SMP. Based on this, Grameenphone was declared an SMP operator on February 10, 2019, due to its 40 percent market share in customer numbers and annual revenue. Along with this declaration, four restrictions were imposed.
Grameenphone challenged the allegations of not fully complying with the conditions in court. The court issued a show-cause notice to BTRC. Later, the imposed restrictions were lifted. Subsequently, BTRC prepared a list of 20 restrictions for SMP operators, which was supposed to be issued gradually. However, Grameenphone also took the process of implementing these restrictions to court. The court ordered BTRC to issue fresh directives within 30 days, including two amendments to the process. These were finally issued at the end of June 2020.
BTRC officials say that currently there are three types of restrictions on Grameenphone as an SMP. Among them, Grameenphone must get approval from BTRC before launching any new service in the market. Other operators do not have this obligation; they only need to inform the regulator. Regarding mobile termination rates (MTR), there is a BDT 0.03 difference between Grameenphone and other operators. When a call is made from a Grameenphone SIM to another operator’s SIM, Grameenphone receives BDT 0.10 as interconnection charge. In contrast, when a call is made from other operators’ SIMs to Grameenphone SIM, Grameenphone receives BDT 0.07. For mobile number portability (MNP), Grameenphone has a longer locking period than other operators. In such a case, if someone wants to switch from another operator to Grameenphone, it takes 90 days. But switching from Grameenphone to another operator takes 60 days. Apart from these, new SIM sales by Grameenphone were suspended for almost a year.
Along with preventing monopoly in the telecom sector, the BTRC has now taken the initiative to assess whether the SMP regulation is playing an effective role in ensuring a competitive environment. For this purpose, a committee was recently formed under the leadership of the commission’s Vice Chairman, Md Abu Bakar Siddique. The committee is currently collecting and analyzing data from the telecom sector. However, Grameenphone and its competitors have demanded a review of the SMP policy. BTRC plans to gather opinions from both sides.
When asked, BTRC Vice Chairman Md Abu Bakar Siddique told Bonik Barta, “BTRC is considering the matter. There is a committee on this, and a meeting will be held soon regarding it.”
Data shows that despite the SMP declaration, the market share in Bangladesh’s telecom sector has not changed much over the years. In 2020, Grameenphone Limited held a 46.44 percent market share in terms of the number of customers. The following year, the company’s market share was 46.11 percent. However, in 2022 and 2023, it dropped slightly to 44 and 43 percent, respectively. By the end of 2024, the operator’s market share increased again to 45 percent. Most recently, at the end of June this year, Grameenphone’s market share rose further to 45.91 percent.
Grameenphone has also maintained its top position in revenue. At the end of 2020, the operator’s revenue was BDT 139.61 billion. It grew steadily in the following years—BDT 143.07 billion in 2021, BDT 150.4 billion in 2022, and BDT 158.72 billion in 2023. However, by the end of 2024, Grameenphone’s revenue slightly decreased compared to the previous year, standing at BDT 158.45 billion.
Sharfuddin Ahmed Chowdhury, Grameenphone’s Head of Communications, told Bonik Barta, “Grameenphone supports a well-planned SMP policy that follows proper procedures and meets international standards. The main goal of this policy is to ensure a fair competitive environment and prevent market failure, so that customers’ best interests are protected. Its purpose is not to hinder the growth of the SMP operator or limit citizens’ access to quality products and services in any way. As an SMP operator, Grameenphone always complies with the restrictions imposed in this strictly regulated market. At the same time, we focus on being the preferred connectivity partner for customers through innovative solutions.”
Calling for a review of the current SMP policy, he added, “We want a truly fair competitive environment for everyone. At the same time, the progress and innovation of the SMP operator should not be hindered.”
In terms of market share, Robi Axiata PLC holds the second position in the country’s telecom sector. In 2020, the operator’s market share was 29.92 percent. The following year, it stood at 29.65 percent. In 2022 and 2023, Robi’s market share was 30.19 and 30.75 percent, respectively. By the end of 2024, it was 30.22 percent. Most recently, at the end of June this year, it rose to 30.46 percent.
Robi Axiata also ranks second in revenue, alongside its customer base. In 2020, the operator’s revenue was BDT 75.64 billion. The company’s revenue continued to grow steadily in the following years: BDT 81.42 billion in 2021, BDT 85.86 billion in 2022, BDT 99.42 billion in 2023, and most recently BDT 99.5 billion in 2024.
Recently, Robi Axiata formally filed a complaint against Grameenphone with the Bangladesh Competition Commission. When asked about this, Robi Axiata’s Chief Corporate and Regulatory Officer Sahed Alam told Bonik Barta, “We have expressed our position to the Competition Commission. We hope the commission will take appropriate action on this matter.”
Banglalink Digital Communications Limited ranks third in both the number of customers and in revenue. In 2020, the operator held a 20.75 percent market share based on customer numbers. The following year, 2021, its market share stood at 20.54 percent. In 2022 and 2023, Banglalink’s market share was 20.09 and 22.79 percent, respectively. By the end of 2024, the company’s market share reached 21.21 percent. Five years ago, in 2020, Banglalink’s revenue was BDT 45.6 billion. The company saw growth over the next three years, earning BDT 47.94 billion in 2021, BDT 53.74 billion in 2022, and BDT 61.49 billion in 2023. However, by the end of 2024, Banglalink’s revenue slightly decreased to BDT 59.78 billion.
Alongside Robi Axiata, Banglalink has also filed a complaint recently with the Competition Commission against Grameenphone. On this, Banglalink’s Chief Corporate and Regulatory Affairs Officer Taimur Rahman told Bonik Barta, “We are always respectful to the country’s laws and work with the relevant authorities to ensure a competitive environment in the telecom industry.”
Among the competing companies in Bangladesh’s telecom sector, the state-owned Teletalk Bangladesh Limited is the farthest behind. Back in 2020, its market share based on number of customers was 2.88 percent. Most recently, at the end of June this year, the operator’s market share rose to 3.50 percent. Much like its customer base, Teletalk also lags behind in revenue. The company’s revenue was BDT 5.75 billion in 2020. By the end of 2024, Teletalk’s revenue stood at BDT 5.25 billion.
Competing operators have long accused Grameenphone of abusing its market dominance to hinder a competitive environment in the country’s telecom sector. Robi, Banglalink, and Teletalk urged BTRC to implement the SMP regulations quickly as soon as they were declared. Recently, the two competitors, Robi and Banglalink, have filed formal complaints against Grameenphone with the Bangladesh Competition Commission.
According to sources at the Competition Commission, Robi and Banglalink have filed complaints against Grameenphone this year for violating competition laws. The complaints mainly focus on selling SIM cards at very low prices—that is, Grameenphone is providing SIM cards at dumping prices. A preliminary investigation into Robi’s complaint has already been completed. The investigation report is now under review. Banglalink’s complaint came very recently. No investigation has been launched yet. The commission will review the complaint and then decide whether to open an investigation or not. In other words, the Competition Commission has not yet decided whether to accept the complaint. The decision will be made at the commission’s meeting.
The Bangladesh Competition Commission says that whenever a complaint is filed against any company in the telecom or any other sector, it does not proceed with a case without thorough analysis and extensive review. The law has several procedural steps, and the commission follows these steps before making any decision.
Asked regarding this, Bangladesh Competition Commission’s Chairperson A H M Ahsan told Bonik Barta, “A preliminary investigation report has been received. It found some breaches of the competition law. Now, the report will be brought to our commission meeting. Then the commission will decide whether to conduct further investigation. Some deviations were found in the preliminary investigation. If actual breaches are confirmed, legal action can be taken on that matter. Since Grameenphone is a dominant player, there is always a chance of abusing that dominant position. Whether Grameenphone has abused that position or to what extent will be revealed through investigation. If the complaint is found valid, action will definitely be taken against them.”