Grameenphone CEO sees 2026 as a reset year for telecom sector

After years of regulatory uncertainty, shrinking margins and declining investment appetite, Bangladesh's telecom sector stands at a crossroads. Grameenphone's Chief Executive Officer Yasir Azman believes the coming year could mark a decisive reset if longstanding structural problems are finally addressed.

In an interview with The Business Standard, Azman described 2025 not as a lost year but as a year of transition, one that laid the groundwork for recovery, reform and renewed optimism ahead of 2026.

"I look at things through an optimistic lens," he said. "Despite the macroeconomic slowdown and many challenges, I still see 2025 as a year of progress, a year that prepares us to move into a better, more hopeful 2026."

A year of movement after prolonged stagnation

According to the Grameenphone CEO, one of the most significant developments of 2025 was the revival of policy and regulatory dialogue, something the industry had long been calling for.

"For years, many issues remained stuck," he said. "But in 2025, we finally saw movement, some big, some small, but together they matter."

He pointed to progress on telecom policy reform, the regulator's readiness for spectrum auctions, and renewed dialogue on low-band spectrum, an essential resource for improving network quality and preparing for 5G.

"There has also been meaningful discussion around quality-of-service regulations," Azman noted. "While the regulator remains strict and rightly so, we were able to reach a more balanced understanding."

He added that amendments related to quality-of-service penalties, long a pain point for operators, have moved in a more practical direction, allowing operators to focus resources on network improvement rather than excessive compliance costs.

Unlocking long-delayed service innovations

Beyond policy and spectrum, Azman highlighted several customer-facing issues that saw progress after years of stagnation.

One of them is handset locking, a global practice that allows operators to subsidise smartphones and offer them at affordable prices.

"For 28 years of telecom in Bangladesh, handset locking was never allowed," he said. "Yet globally, this is a standard mechanism to make smartphones affordable. There was never a clear justification for not allowing it here."

He also cited progress on data product flexibility. Bangladesh's telecom market, despite serving over 85 million mobile internet users in a population of 170 million, was long restricted to offering a very limited number of data products.

"We were confined to around 40 data products in a world that is moving towards hyper-personalisation; that restriction has now been lifted," he said.

Clarification on Voice over WiFi (VoWiFi) services and international roaming billing in local currency were also described as breakthroughs.

"For students and small businesses travelling abroad, roaming is not a luxury, it's a necessity," Azman said. "When banking systems rely on OTPs and digital verification, not having roaming becomes extremely disruptive."

Fibre and 5G: building the next layer

Azman stressed that fibre infrastructure will become even more critical as Bangladesh moves toward next-generation connectivity.

He said fibre is an extremely important component of our business; without fibre, you cannot deliver the data experience customers expect today, and you certainly cannot roll out 5G effectively.

He acknowledged that restrictions around fibre deployment had previously slowed expansion, but said progress in this area would be key to supporting future technologies and enterprise solutions.

The tax structure between mobile operators and Internet Service Providers (ISPs) is another obstacle for telcos.

He said ISPs currently pay approximately 5% in taxes, whereas mobile operators face a 55% tax burden. This disparity allows ISPs to offer much lower prices, leading customers to shift their high-volume usage to home Wi-Fi.

Customers, capability, technology: three lenses for 2026

As Grameenphone looks towards 2026, Azman said the company's strategy is framed around three core lenses: customers, organisational readiness and technology.

The first lens is the customer going beyond basic voice and data.

"The question is no longer just connectivity," he said. "It's about how we secure customers in our network, how we protect their privacy, their financial transactions, and their digital lives."

Cybersecurity, cloud storage, connected devices and digital solutions for businesses will increasingly define the operator's role in the broader digital ecosystem, he added.

"We will not produce everything ourselves," Azman said. "But we must work with ecosystem partners to bring relevant solutions that help people and businesses become more efficient."

Artificial intelligence will be a central force shaping this transition, he said. "AI is already being used at an individual level, but its real impact will be transformational for businesses and industries," he said. "If used responsibly, it can help enterprises flourish."

The second lens is people and organisational capability.

"Are we equipped as an organisation? Are our employees ready to adopt new technologies and serve customers in a much more complex digital environment?" he asked. "This will be a major focus for us going forward."

The third lens is technology itself.

"In telecom, nothing is possible without technology," Azman said. "Advanced networks, automation, and AI-driven operations are what will define competitiveness in the new world."

Investment dilemma: tax and disputes

Despite the optimism, Azman was blunt about the two biggest barriers holding the industry back: an exceptionally high tax burden and unresolved financial disputes.

"Unless these are resolved, investment appetite will remain very limited," he warned.

Bangladesh's telecom operators face a corporate tax rate of 40%, along with 15% VAT, 20% supplementary duty, revenue sharing, spectrum fees, social obligation funds and a fragmented licensing structure.

"I have not found another country close to Bangladesh in terms of spectrum cost," Azman said. "It is unheard of."

More damaging, he argued, is the accumulation of audit disputes stretching back to the very beginning of the sector.

"In 28 years of operation, not a single year's audit dispute has been fully resolved," he said. "All three operators are foreign investors, and all carry massive disputed liabilities."

According to industry estimates, disputed amounts, including interest, run into tens of thousands of crores of taka across operators.

"How will investors decide to invest more when uncertainty exists from inception till today?" Azman asked.

The CEO revealed that data services in Bangladesh are essentially subsidised by the voice business, which is now declining.

He warned that if voice revenue continues to drop, the current profitability of Grameenphone may not be sustainable in 5 to 7 years.

A case for arbitration and reset

Azman believes that international arbitration could offer a pragmatic solution.

"If disputes remain in court for another 10 years, followed by another 10 years of accumulated interest, no telecom business will be viable," he said. "Bangladesh already has an arbitration law, why not use it?"

The Grammenphone CEO welcomed recent dialogue with the regulator on this issue, describing it as a positive step after years of silence.

"This is the first time we are having structured conversations on dispute resolution," he said. "That itself is progress."

Competition, SMP and innovation constraints

Another issue Azman raised is the competitive framework, particularly Significant Market Power (SMP) regulations.

"SMP continues to pull us down when it comes to innovation," he said. "Every product or service requires lengthy approvals, sometimes taking years."

He questioned why, in a market with three operators each serving more than 40 million customers, profitability remains elusive.

"We were profitable with far fewer customers in the past," he said. "So why is the industry struggling now? The answer lies in taxes, disputes, competition rules and pricing constraints."

Why telecom reform matters for Bangladesh

Azman stressed that telecom reform is not just an industry concern; it is fundamental to Bangladesh's development trajectory.

"If inequality is to be reduced, digital services are essential," he said. "Healthcare, education, financial inclusion, nothing works without strong connectivity and continuous innovation."

He credited journalists and the media for playing a constructive role in highlighting issues and facilitating dialogue.

"Without media scrutiny and constructive criticism, progress would be far more difficult," he said.

As Bangladesh enters 2026 with renewed political and economic expectations, Azman sees a narrow but crucial window for action.

"This is a reset moment," he said. "If taxation, disputes, competition and pricing are addressed step by step, investment will return."

"And once investment returns," he added, "telecom can again become a powerful engine for national progress."