Bangladesh aims to halve smartphone costs to boost digital adoption

The Bangladeshi government is moving to reduce the cost of entry-level smartphones to between 5,000 and 6,000 taka as part of a broader strategy to accelerate digital inclusion. Rehan Asif Asad, the Prime Minister's advisor on posts, telecommunications, and information technology, announced the initiative on Sunday, noting that the current minimum price point of 10,000 taka remains a significant barrier for many citizens. He stated that the government intends to work closely with manufacturers and implement targeted budgetary policy support to lower these costs.

Speaking at a ceremony marking Grameenphone’s launch of the 700 MHz spectrum in Dhaka, Asad emphasized the government’s commitment to easing the tax burden on the ICT sector. He revealed a long-term plan to implement biennial tax reductions leading up to 2031, highlighting that recent budget adjustments already included the removal of SIM taxes to provide direct relief to consumers.

During the event, the advisor pointed to the technological gap between global standards and local infrastructure. While the 700 MHz band was introduced in the United States as early as 2011, Bangladesh is only adopting the technology in 2026. Asad noted that this disparity underscores the significant work required for Bangladesh to remain competitive with the global digital landscape.

Grameenphone CEO Yasir Azman described the deployment of the 700 MHz band as a milestone in the operator’s commitment to network excellence. He explained that the new spectrum would be critical in enhancing 4G performance while laying the groundwork for the future integration of 5G, artificial intelligence, and the internet of things. Beyond speed, Azman highlighted that the spectrum would significantly improve indoor coverage and ensure more reliable digital service for millions of subscribers.

The spectrum was awarded to Grameenphone by the Bangladesh Telecommunication Regulatory Commission (BTRC) earlier this year, granting the operator 10 MHz of bandwidth for a 13-year term. The allocation is expected to contribute approximately 2.2 billion taka to the national exchequer over the duration of the license. The launch ceremony was attended by BTRC Chairman Major General (Retd.) Emdad Ul Bari and other senior officials from the regulatory body and the telecommunications sector.

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