The former Awami League government launched a project four years ago to introduce 5G services through Teletalk. However, even after four years, customers have yet to experience the promised service. The project’s tenure has already expired for the second time, and efforts are now underway to extend it for a third phase. Officials involved say the project, initially meant to improve customer service, has instead become a burden for the current government. Despite spending billions of BDT, network installation — the project’s core task — remains stalled. Work on substations for tower transmissions has not even begun.
According to project documents, the Ministry of Posts, Telecommunications and Information Technology approved the “Expansion of Teletalk’s Network up to Rural Areas and Network Readiness for 5G Services” project in 2021. The initial estimated cost was BDT 22.04 billion, which later rose to BDT 22.38 billion after revisions. The project was supposed to be completed by June 2023, but the agency failed to show any visible progress within the timeline. As a result, a proposal has been sent to the Planning Commission recommending a third extension for another two years.
As per the Development Project Proposal (DPP), only BDT 3.51 billion, around 15.94 percent of the original BDT 22.04 billion allocation, was spent in the first two fiscal years. Under the revised plan, BDT 10.08 billion had been spent as of April 2025, out of the total revised allocation of BDT 22.38 billion over three years and ten months.
Despite such massive public spending, the network expansion has stalled due to a lack of eligible bidders and repeated violations of government conditions. At Teletalk’s office in Mohakhali, Dhaka, work on installing transmission equipment for new towers has yet to begin. Substation construction and tower installation remain at a standstill.
During a field visit on October 12, the construction of transmission equipment and substations under Teletalk’s network expansion was found to be suspended. An official involved with the project, requesting anonymity, told Bonik Barta that installation of about 3,200 network towers has been nearly completed. Equipment for another 3,000 locally procured base transceiver stations (BTS) has been collected, but local procurement and battery installation tenders were canceled for being unrealistic.
A monitoring report by the Implementation Monitoring and Evaluation Division (IMED) in June 2025 stated that nearly 78 percent of upgrades to 3,200 existing towers under the project had been completed. Preparations are now underway to invite fresh tenders for the installation of 3,000 new towers.
Project Director (Additional Duty) Md Nizam Uddin confirmed the suspension of work. He told Bonik Barta, “Some site work is ongoing, while others have stopped. Discussions are underway to resolve issues at the suspended sites.”
Economist Dr. Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development (InM), said the project should be reassessed. “Delays in implementation have caused price increases both locally and globally,” he said. “The initial estimates no longer match current market realities. The authorities should resolve the issue through discussions with project stakeholders.”
Investigations found that despite plans to expand Teletalk’s network across the country, 2G service remains unavailable in many areas. Industry insiders said Teletalk initially showed promise but has since fallen behind all other telecom operators in subscriber numbers, revenue, and network coverage. Yet, the government continues to pour significant funds into the company.