Teletalk looks for funds to develop 4G network

Teletalk is looking for funds to develop the fourth generation mobile network, although the planning commission has suggested going for a public-private partnership.

The project will cost about Tk 2,500 crore, according to officials of the state-run mobile operator.

"The telecom market is a very competitive one now and there is no guarantee of return of the investment, so it is highly unlikely that we will find any interested company for PPP," said Gias Uddin Ahmed, managing director of Teletalk.

Subsequently, the operator is now looking for international lenders, said Md Faizur Rahman Chowdhury, telecom secretary and the chairman of the Teletalk board.

Teletalk established its 3G network with a $211 million (around Tk 1,639 crore) foreign suppliers' credit from Chinese Exim Bank and taking equipment from Huawei. It also used local funds of about Tk 424 crore, taken as arranged loans from banks.

"This time, we need much more money than that," said Ahmed, who was the director of the 3G project.

The 3G project was for the cities and district headquarters but the 4G one is for rural areas as well, he said.

Teletalk also plans to raise the issue before the Prime Minister's ICT Affairs Adviser Sajeeb Wazed Joy in a meeting on July 30, where they will seek advice from him about the issue, said a senior official of the operator.

"Within the next two weeks we will write to the planning commission to clear our position and then they can make their decision," Ahmed added.

Meanwhile, the state-owned company formulated another plan to upgrade its network. The project will require Tk 780 crore.

Currently, Teletalk has about 3,800 base stations and it wants to increase the number to at least 7,000 for offering satisfactory service to its customers, according to the plan.

It will establish Wi-Fi hotspots in parts of the country, and the project also includes 4G services, according to a presentation prepared for the meeting with the ICT adviser.

The state-owned operator so far found 1.5 million 3G subscribers though the total market size has crossed the 15 million-mark.