Banglalink intends to merge with Teletalk, parent Veon keen to invest in Nagad

Banglalink, Bangladesh's third-largest mobile operator, has expressed interest in merging with state-owned Teletalk and partnering with Bangladesh Telecommunications Company Limited (BTCL), while its parent company Veon has separately sought to invest in the mobile financial service provider Nagad.

Johan Hendrik Martinus Buse, managing director and chief executive of Banglalink, wrote to Rehan Asif Asad, adviser to the prime minister for the Ministry of Posts, Telecommunications and Information Technology, requesting meetings to discuss the proposals, according to copies of the correspondence described in the letters sent on 28 March.

Merger proposal with Teletalk

Banglalink said a potential partnership or merger with Teletalk could significantly reshape the country's telecommunications landscape.

According to the letter, combining Banglalink's operational expertise with Teletalk's government status and spectrum assets could expand network coverage, particularly in underserved rural areas, while optimising infrastructure investments through shared use of towers, spectrum and technology.

The company also said the collaboration could strengthen Teletalk's competitive position and accelerate nationwide digital inclusion. It noted that a pilot initiative involving active network sharing and national roaming between the two operators had already been undertaken in early 2024, signalling initial progress towards deeper cooperation.

Partnership with BTCL

Banglalink also proposed a strategic partnership with BTCL, arguing that combining BTCL's fixed-line and fibre infrastructure with Banglalink's mobile network and digital platforms, including its Toffee over-the-top streaming service, could enable bundled telecom offerings such as triple-play and quadruple-play services for households and businesses.

The operator said such cooperation could improve customer experience, diversify revenue streams and strengthen the competitiveness of both organisations in an increasingly converged digital market.

Starlink service and spectrum request

Banglalink further proposed launching direct-to-cell satellite connectivity through Starlink, describing the technology as an opportunity to extend mobile coverage to remote and hard-to-reach areas by allowing standard mobile devices to connect directly to satellites without specialised equipment.

The company said Veon had already introduced the service through subsidiaries in Ukraine and Kazakhstan, although implementation in Bangladesh would require changes to existing regulatory frameworks, including spectrum policies and licensing provisions for satellite-based mobile services.

The operator also reiterated its need for low-band spectrum, including frequencies in the 700 MHz or 800 MHz bands, to improve rural coverage and indoor network penetration.

The letter noted that Grameenphone had recently acquired 700 MHz spectrum through an auction conducted by the Bangladesh Telecommunication Regulatory Commission despite being the sole participant. Banglalink also expressed interest in obtaining spectrum in the Extended GSM band, acknowledging that parts of the band are affected by cross-border interference but arguing that certain portions could still be effectively used with appropriate planning and refarming.

According to the company, access to these spectrum resources would improve service quality, support wider 4G deployment and facilitate future 5G expansion.

Veon's interest in Nagad

In the letter, Banglalink said Veon regarded Nagad, the country's second-largest mobile financial services provider, as an attractive investment opportunity because of its rapid growth, range of services and extensive distribution network, adding that a potential investment or partnership could bring technological expertise, enhance user experience and deepen integration between telecommunications and financial services.

The proposal from Veon, a multinational telecommunications and digital services company headquartered in Dubai, comes as several other foreign companies, including Malaysia's Axiata, Japan's KDDI and South Korea's Konai, have also expressed interest in investing in or acquiring a stake in Nagad, according to sources.

Banglalink itself has also applied to Bangladesh Bank for a digital banking licence, although the newly elected government has yet to make a decision on the licensing process initiated during the interim administration.

Speaking to The Business Standard, Nagad founder Tanvir A Mishuk said Veon had first approached the company in 2024 regarding potential collaboration but discussions had not progressed at the time.

"Following the formation of the new government, Veon has once again reached out to us, and we are currently exploring a potential strategic partnership," he said.

Mishuk added that several other international technology and fintech companies had also expressed interest in potential investment and strategic cooperation but declined to provide further details.

Nagad ownership and performance

Nagad Limited, established by Third Wave Technologies Limited, operates as the Bangladesh Post Office's master agent and built the platform's technological and operational infrastructure using its own investment.

While the Bangladesh Post Office holds the interim mobile financial services licence, customer data and trust accounts, Nagad owns the underlying technology, software, infrastructure, distribution channels, human resources and operational assets.

The platform has been under Bangladesh Bank's interim oversight since August 2024, when the central bank restructured its board and appointed an administrator following the fall of the Awami League government.

Several former executives, including former managing director and chief executive Tanvir Ahmed Mishuk, face legal proceedings over alleged financial irregularities, while Bangladesh Bank has filed a separate case against former chairman Syed Mohammad Kamal and 22 others over the alleged creation of Tk645 crore in electronic money without reserve backing.

Former Bangladesh Bank governor Ahsan H Mansur had previously said the postal department lacked the capacity to operate Nagad and announced plans to privatise the platform by bringing in strategic investors. 

In August 2025, the Bangladesh Investment Development Authority issued a request for expressions of interest to appoint a financial adviser for the proposed sale, although the process has since stalled because of disputes over ownership and questions over the government's authority to sell the business.

According to the company, Nagad currently has nearly 3 crore active users out of around 9 crore registered accounts as of May this year. It processed transactions worth Tk44,639 crore in May, surpassing its previous monthly record of Tk41,469 crore set in March, after handling Tk40,301 crore in January.

The platform also set new daily transaction records during the Eid-ul-Adha period, processing Tk2,162 crore on 24 May before reaching Tk2,177 crore on 26 May.