DHAKA, June 14, 2026 (BSS) - Prime Minister's Adviser on the Ministry of Posts, Telecommunications and Information Technology Rehan Asif Asad today said the government plans to reduce tax rates in the telecommunications sector periodically every two years over the next five to 10 years as part of a long-term roadmap to strengthen the digital economy and encourage investment.

"If you have listened to the Finance Minister when he announced the changes (in budget speech), he also said one line that over the next five to 10 years we will periodically, every two years, reduce the tax rate," he said while speaking at the launch of 700 MHz spectrum services in a city hotel.

Country's leading mobile phone operator, Grameenphone launched the nationwide deployment of the recently acquired 700 MHz spectrum band as the first operator in Bangladesh, marking a significant milestone in advancing digital connectivity and enhancing customer experience across the country.

Rehan said the government's latest budget measures were only the beginning of a broader reform agenda extending through 2030, aimed at addressing longstanding industry concerns and building a globally competitive digital ecosystem.

He said Bangladesh has one of the highest tax burdens in the telecommunications sector while at the same time having a tax-to-GDP ratio of only 6.5 percent, the third lowest in the world.

Recalling discussions with telecom operators, fixed-line operators and mobile handset manufacturers after taking responsibility for the sector, he said the issue of taxation emerged as one of the industry's most persistent concerns.

The adviser said the challenge was particularly complex because the government had to balance industry demands for lower taxes with the country's need to improve revenue collection.

He said consultations were held with regulators, operators and industry stakeholders to identify key challenges and opportunities facing the sector.

"We are not going to solve all the problems in one day or one year, but what we are committed to is finding a solution and starting the journey so we can be one of the best markets in the world," he said.

Rehan expressed gratitude to the Prime Minister and the Finance Minister for supporting reforms proposed for the telecommunications sector in the national budget.

He said the government reviewed various tax structures, including issues related to double taxation and barriers affecting consumers and businesses.

The adviser said the government also focused on the challenge of smartphone adoption, noting that around 50 percent of consumers still do not own smartphones.

He said discussions were held with handset manufacturers to explore ways of producing smartphones at lower prices, particularly for low-income consumers.

According to him, manufacturers outlined a range of policy and tax measures needed to reduce production costs, and those recommendations were reflected in the budget proposals.

Bangladesh Telecommunication Regulatory Commission (BTRC) Chairman Major General Md Emdad Ul Bari (retd) also spoke on the event, apart from BTRC and Grameenphone officials.

Rehan Asif Asad said freelancers, content creators and other stakeholders were also consulted during the preparation of the budget.

"What the Finance Minister presented on the floor is a reflection of all your input," he said.

Describing the launch of 700 MHz services as a transformative event, the adviser said the initiative would serve as a foundation for Bangladesh's broader digital transformation journey.

Recalling his experience with AT&T's 700 MHz rollout in the United States in 2011, he said the launch brought back memories of a period when mobile networks were struggling to cope with the rapid growth in smartphone traffic following the introduction of the iPhone.

"It is better late than never, but we have a lot of catch-up to do," he said, thanking Grameenphone, BTRC and the vendor community for making the spectrum launch possible.

Outlining the government's long-term vision, Rehan said Bangladesh could become the world's ninth-largest consumer and digital economy by 2029, according to studies conducted by BCG and other organisations.

"We have to prepare ourselves. We have to get ourselves ready," he said.

The adviser said the government would focus on four key areas in the ICT and telecommunications sectors: connectivity, digital public infrastructure, data centres and artificial intelligence, and electronics manufacturing.

He stressed that connectivity would remain the top priority, urging operators, vendors and regulators to accelerate the rollout of 5G services across the country.

"5G Connectivity is the oxygen of the whole digital ecosystem. If you don't have connectivity, we have nothing," he said.

Rehan said the government wants Bangladesh to have world-class wireless and wired connectivity and noted that Wi-Fi services have already been launched at all airports across the country.

He said work would begin next month on establishing Bangladesh's first Digital Public Infrastructure (DPI), which would include a "one citizen, one digital ID, one digital wallet" framework.

Under the initiative, every citizen would have access to a digital identity and be connected to the digital economy through a digital wallet.

The adviser said the government also intends to develop data centre infrastructure and promote the use of artificial intelligence while opening digital platforms to innovators and startups.

He said the government's role would be to create the ecosystem while allowing the private sector, innovators and freelancers to develop applications and services.

"No government, no country in the world can deliver that. The government will create the ecosystem and the private sector will innovate," he said.

Rehan said the fourth pillar of the government's strategy is the development of the electronics and consumer electronics industries.

According to him, the electronics and consumer electronics sectors will receive the same benefits for the next 10 years to encourage investment and manufacturing growth.

The adviser expressed confidence that with policy consistency and sustained support, Bangladesh could emerge as a global player by 2030.

Concluding his speech, he said the government would continue working closely with telecom operators, vendors, innovators, investors and regulators to advance the country's digital transformation agenda.

"We need to do it together as partners," he said, assuring stakeholders that the government would remain open to their views and committed to supporting the sector's development.

Speaking the occasion, BTRC Chairman Emdad Ul Bari said "The deployment of the 700 MHz spectrum represents a significant step forward in strengthening Bangladesh's telecommunications ecosystem and expanding equitable access to digital services." 

"As a low-band spectrum, it will play a critical role in improving coverage quality, particularly in indoor environments and underserved areas across the country," he said, adding, "For customers, this means more reliable connectivity, better voice and data performance, and improved access to essential digital services-regardless of location."

Grameenphone Chief Executive Officer Yasir Azman said that the deployment of the 700 MHz spectrum demonstrates Grameenphone's continued commitment to delivering a superior network experience to customers across the country. 

He said it will play an essential role in enhancing 4G performance and enable us to prepare for future-ready technologies such as 5G, AI, and IoT by supporting higher data speeds, lower latency, and a higher-quality user experience across diverse environments. 

"This spectrum will also significantly enhance indoor coverage, strengthen rural connectivity, and enable us to provide more reliable and seamless digital services to millions of customers," he added.

Earlier this year, BTRC allocated Grameenphone 10 MHz spectrum in the 700 MHz band for the first time in Bangladesh. The spectrum has been allocated for a period of 13 years. With this allocation, Grameenphone will contribute around Tk 2,200 crore to the national exchequer over the allocation period.