5G readiness plan at a snail’s pace: What lies ahead for BTCL?

The work on Bangladesh Telecommunications Company Limited (BTCL)'s Tk1,059 crore 5G readiness project remains stalled halfway due to standoff between the ministry concerned and Anti-corruption Commission (ACC) over unresolved allegations of irregularities in procurement.

Infographic: TBS

Project officials said the deadlock has deprived the country of the project's intended benefits, including expanding nationwide high-speed internet services and upgrading the optical fibre transmission network to meet rising bandwidth demand through 2030.

The project, which began in April 2022, was later extended until December 2026. Around Tk650 crore has already been invested. However, work was suspended after the ACC launched an investigation into allegations of irregularities in the procurement in the project.

In a letter issued in June 2025, the ACC said allowing the project to continue would be inconsistent with the law while its investigation was under way. The commission later concluded that corruption had occurred in the project's procurement process.

During the tenure of the interim government, the Ministry of Posts, Telecommunications and Information Technology also formed several committees to review the allegations. 

After conducting multiple investigations, the ministry informed the ACC that it had found neither irregularities in the procurement process nor any technical flaws.

In May this year, the ministry wrote to the ACC secretary requesting the commission to reconsider its decision so that the remaining work on the BTCL project could proceed. However, officials said the ACC has yet to take a final decision because several senior positions at the commission remain vacant.

Later in the same month, the ACC investigation committee recommended filing cases against 41 individuals. The committee also recommended blacklisting the contractor, Huawei.

What ACC probe found

A five-member ACC committee found evidence of irregularities and corruption in eight aspects of the project and submitted a 79-page report. However, no further action has been taken as the commission cannot make a final decision due to vacant senior positions.

The report said project authorities opted to procure Dense Wavelength Division Multiplexing (DWDM) equipment with a capacity of 126 terabytes instead of the 26 terabytes specified in the Development Project Proposal (DPP). 

It also found that confidential tender information had been disclosed to bidders with "dishonest intent" and that attempts were made to exert "unlawful influence" over the bidding process in breach of the Public Procurement Act, 2006, and the Public Procurement Rules, 2008.

According to the report, irregularities, a lack of transparency and procedural inconsistencies were evident at almost every stage of the procurement, from planning to implementation.

What ministry said

In a 5 May letter to the ACC, the ministry cited findings from several committees formed during the interim government's tenure to review the procurement allegations.

It said the procurement process complied with all rules and that the Consortium of Huawei International and Huawei Technologies (Bangladesh) was awarded the $26.55 million (about Tk311 crore) contract as the lowest responsive bidder. Both the ministry's fact-finding and technical committees found no irregularities in the tender process.

The technical committee also concluded that the equipment specifications were appropriate and capable of meeting the country's bandwidth needs through 2030.

In response to the ACC's 18 June 2025 letter, which said continuing the project would be unlawful, BTCL's legal adviser argued that procurement could not be suspended solely because of an ACC inquiry unless ordered by a court or another competent authority.

The ministry added that the then special assistant to the chief adviser on telecommunications affairs endorsed continuing the project at a BTCL board meeting on 29 June 2025 so that the installed equipment could be brought into operation. 

The Subject Matter Expert Team and the Cost-Benefit Analysis Committee also backed resuming the remaining work, the letter added.

Cost of project delay

According to BTCL officials, the project has two main components: Package GD-1 for equipment supply and installation, and Package WD-1 for optical fibre deployment. About 85% of GD-1 and 60% of WD-1 have been completed.

In its letter to the ACC, the ministry warned that scrapping the project would inflict significant financial losses. It said irrevocable letters of credit worth Tk326 crore and Tk31 crore opened for GD-1 could not be cancelled, risking the funds becoming sunk costs.

The ministry said most equipment installed under BTCL's IP project would remain idle if the project was abandoned, wasting hundreds of crores of taka in public investment.

It added that the project is essential to building BTCL's backbone transmission network, which will carry internet bandwidth to districts and upazilas nationwide. 

Until the network is completed, equipment already installed under the IP project cannot be commissioned, leaving costly infrastructure unused, according to the ministry. 

Project Director S Wazed Ali declined to comment, saying all queries should be directed to BTCL's managing director as he was not authorised to speak publicly on the project.

Managing Director Md Aslam Hossain, who took office on 15 June 2025 after leading Bangladesh Submarine Cable, did not respond to calls or a text message seeking comment.

Several people involved in the project also declined to comment on the record, citing the ongoing ACC investigation.

However, project officials, speaking anonymously, said any proven corruption should be dealt with under the law, but stressed that completing the project is vital for BTCL's future.

They said the 5G Readiness Project would support the Sustainable Development Goals, strengthen Bangladesh's digital infrastructure and help deliver the government's pledge of "fast and reliable internet for all" through BTCL's backbone transmission network.

One official warned that failure to complete the project would leave BTCL lagging behind private competitors in technology and infrastructure, eroding customer satisfaction, revenue and market share. It could also force the state-owned operator out of the wholesale bandwidth business, leaving the market entirely in private hands.

"The 5G readiness project is not merely a financial investment," the official said. "It is fundamental to BTCL's technological capability, the government's strategic position and Bangladesh's global competitiveness. It should be implemented without further delay."