Telenor, Axiata, VEON warn govt over 'regressive' draft telecom policy
New rules could ‘seriously jeopardise’ future investments; 80% foreign ownership may undermine investor confidence, say the telecom giants
Three of Bangladesh's largest foreign telecom investors, Telenor Asia, Axiata Group, and VEON, have jointly raised serious concerns over proposed changes to the country's telecommunications policy, warning the interim government that the new rules could "seriously jeopardise" future investments and threaten the nation's digital ambitions.
In a letter addressed to Chief Adviser Muhammad Yunus on 3 July, the parent companies of Grameenphone, Robi, and Banglalink described the draft Telecommunications Network and Licensing Reform Policy 2025 as "regressive" and "highly interventionist".
The investors highlighted several proposals they believe would be detrimental to the sector's growth.
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The telcos voiced particular alarm over a proposed cap on foreign ownership, limiting stakes to 80% for mobile network operators (MNOs) and 55% for other digital infrastructure companies, which, if applied retroactively, they said would contradict Bangladesh's stated goal of attracting global investment.
"Any foreign ownership restriction or capping… will be detrimental for the potential growth of the sector," the companies wrote, warning such a move would damage investor confidence and Bangladesh's reputation as a business-friendly destination.
The letter, seen by TBS, also criticised the "increasingly prescriptive nature" of the draft rules, citing stringent fiber network targets and the removal of international SMS rights from mobile operators as examples of an "excessively rigid and interventionist" approach.
The companies argue these mandates would stifle innovation, increase operational costs, and limit their ability to respond to market demands.
While praising the interim government's reform efforts, the CEOs of Axiata and VEON, and the head of Telenor Asia urged for "formal consultations with all parties including industry and private sector investors" before the policy is finalised.
As long-term investors, the groups reaffirmed their belief in Bangladesh's potential but cautioned that if enacted, the proposed changes would damage the country's reputation as an investment destination and hamper its wider socio-economic goals.
The signatories of the letter are Jon Omund Revhaug, executive vice president, head of Telenor Asia; Vivek Sood, Group CEO and managing director, Axiata Group; and Kaan Terzioğlu, Group CEO, VEON.
