The long-awaited Chinese-Bangladesh cooperation project to expand Teletalk's 4G network to union level has hit a deadlock after more than eight years, raising concerns about the future of the state-owned telecom operator and its bilateral relations with China.
Funded under the Chinese Government Concessional Loan (GCL), the project planned to deploy 3,200 Base Transceiver Systems-2,000 new and 1,200 replacements-to strengthen Teletalk's nationwide 4G services. However, officials say undue intervention from the Economic Relations Division (ERD) and Posts and Telecommunications Division (PTD) has thrown the procurement process into uncertainty.
Following a 2017 ERD circular, three Chinese government-nominated firms submitted bids in September 2024. In January 2025, the Tender Evaluation Committee (TEC) deemed the technical offers "non-responsive" and recommended retendering. Teletalk's board approved retendering among the same firms, and the Central Procurement Technical Unit (CPTU) confirmed it was legally valid under Rule 34 of PPR 2008. Yet CPTU added a clause requiring ERD consultation-unnecessary for GCL projects.
Instead of consulting Beijing, ERD demanded expanding the shortlist to 5-8 bidders, effectively overruling China's nomination authority and breaching GCL protocols. Experts warn this could undermine diplomatic trust, as China views such interference as a violation of bilateral financing agreements.
The project is to deploy 3,200 Base Transceiver Systems, 2,000 new, 1,200 replacements
Sources allege vested interests are pushing for a single manufacturer to dominate Teletalk's supply. Currently, the network is distributed among Huawei (70%), ZTE (20 per cent), and Nokia (10 per cent). Maintaining this balance was crucial for smooth integration and cost-effective maintenance. Allowing one supplier to dominate would create a monopoly, inflate costs, and weaken Teletalk's bargaining power.
The controversy deepened when ERD letters misrepresented procurement facts, falsely claiming the firms were "non-responsive" instead of the technical offers. Further, a TEC member's unauthorized media statements breached confidentiality, politicising the process.
Officials warn the stalemate is eroding Teletalk's competitiveness, delaying expansion and undermining public confidence in the sole state-owned telecom provider.
Analysts caution that disregarding GCL protocols could strain Bangladesh's economic cooperation with China and jeopardize future Chinese-financed projects.
With the "union-level 4G dream" hanging in uncertainty, bureaucratic infighting and external pressures threaten to derail Teletalk's modernisation efforts. Teletalk MD Nurul Mabud Chowdhury could not be reached for comment.
