As Bangladesh prepares to observe World Telecommunication and Information Society Day on May 17 (Sunday), the country's digital ambitions face an uncomfortable contradiction. While millions rely on mobile phones and broadband services every day, internet quality remains among the weakest in the world, exposing deep structural problems in one of the country's most critical industries.
For a nation pushing towards a digital economy powered by e-commerce, fintech, artificial intelligence and smart manufacturing, poor connectivity is no longer just a technical inconvenience - it is becoming a development challenge.
According to Ookla's Speedtest Global Index, Bangladesh ranks 86th among 103 countries in mobile internet speed, with a median download speed of 41.72 Mbps against the global median of 103.01 Mbps.
The broadband picture is even worse.
Rehan Asad, the prime minister's adviser on telecom and ICT, recently said Bangladesh ranks 141st among 153 countries in broadband service quality despite having one of the world's largest subscriber bases.
Industry insiders say the crisis is not caused by weak demand or a lack of digital adoption. Instead, they point to years of regulatory uncertainty, high fiscal burdens, weak investment and structural inefficiencies that have gradually eroded the sector's capacity to modernise.
Bangladesh's telecom sector contributes less than one percent to GDP, far below neighbouring and regional economies. In India, telecom contributes between 2.8 and 3 percent of GDP, while Thailand records more than 2 percent.
Yet Bangladesh's telecom operators carry more than 95 percent of the country's internet traffic and serve over 190 million mobile subscriptions.
Experts say this mismatch reflects a deeper monetisation crisis.
Over the past five years, capital expenditure in the telecom sector has steadily declined. While Indian operators invest between USD 10 billion and USD 12 billion annually, Bangladesh's entire telecom sector invests less than USD 1.5 billion a year - far below what analysts say is needed for 5G readiness, fibre expansion and advanced enterprise services.
The impact is increasingly visible in network quality and service reliability, particularly outside major urban centres where users frequently complain of call drops, weak coverage and slow internet speeds.
Investor confidence has also weakened.
Over the last decade, Bangladesh's telecom industry has witnessed declining foreign direct investment, while regional markets attracted global technology giants and investment funds into their digital ecosystems.
Telecom analysts say capital naturally flows towards markets where policy stability, regulatory predictability and long term returns are more visible.
Despite the challenges, the sector still holds enormous potential.
Bangladesh's digital economy is projected to surpass USD 100 billion by 2030, driven by rapid growth in digital payments, logistics, online commerce and industrial automation. Telecom infrastructure already forms the backbone of that ecosystem through nationwide fibre networks, SME connectivity and large scale consumer data services.
But market imbalance is becoming another growing concern.
The Bangladesh Telecommunication Regulatory Commission is facing pressure over allegations surrounding Grameenphone's market dominance. Robi Axiata recently filed a formal complaint accusing the country's largest mobile operator of predatory pricing and excessive SIM subsidies aimed at undermining competition.
Meanwhile, broadband internet has quietly emerged as a major economic force.
Industry estimates suggest Bangladesh now has nearly 90 lakh broadband connections serving more than three crore users and consuming around 60 percent of the country's nearly 10 Tbps international internet bandwidth. The sector generates between Tk 7,000 crore and Tk 8,000 crore annually.
Aminul Hakim, president of the Internet Service Providers Association of Bangladesh, said the industry has become a major employer, directly and indirectly supporting between six lakh and seven lakh jobs, including engineers, technicians, customer support staff and field workers.
He added that the country's actual broadband footprint is significantly larger than official figures because of unauthorised operators active across different regions.
For policymakers, the challenge is now urgent.
Without stronger investment, regulatory reform and fair market competition, Bangladesh risks entering the next phase of the digital economy with infrastructure unable to support its ambitions. The country's digital future may depend not only on expanding connectivity, but on fixing the foundations of the telecom sector itself.
