Teletalk limping with 4G expansion to union levels

Teletalk, the state-run telecom operator, is encountering significant hurdles in its efforts to expand 4G mobile broadband services to union levels across Bangladesh.

The Tk 29 billion project, aimed at improving 4G access in rural and underserved areas, is facing delays, sparking concerns among stakeholders.

Funded through a Government-to-Government (G2G) agreement between Bangladesh and China, the project involves a Chinese investment of Tk 20 billion, with Bangladesh contributing over Tk 9 billion. However, the rollout of 4G services has been delayed due to complications in the bidding process.

Under the government procurement policies, G2G projects involving Chinese funding must follow the Limited Tendering Method to ensure fair competition, pricing efficiency, and optimal product quality. Despite this requirement, the process has encountered several obstacles.

Initially, three Chinese firms were selected as potential bidders for the project: China International Telecommunication Construction Corporation (CITCC), Yunnan Construction and Investment Holding Group (YCIH), and China Machinery Engineering Corporation (CMEC).

However, all three companies have been accused of violating key tender rules, including failing to submit the required tender security deposit, providing incomplete product details, and not keeping technical and financial proposals separate.

Despite these violations, CMEC has advanced in the bidding process, raising further concerns. The company is also accused of proposing substandard products from non-reputable suppliers, in direct violation of project guidelines. Now Technical Evaluation Committee has declared all three companies are ineligible.

Teletalk's Managing Director and Head of Procurement, Nurul Mabud, confirmed that all three companies have been deemed ineligible by the committee due to these violations. "We are considering cancelling this tender and inviting new tenders. We have written to the Central Procurement Technical Unit (CPTU) and ERD seeking instructions on how to proceed," Mabud said.

CPTU and the Economic Relations Division (ERD) have stated that it is Teletalk's prerogative to decide how to proceed with the tender. "If any changes are needed, Teletalk must inform ERD, which will then consult with the Chinese government for a solution," said an official concerned.

Procurement experts have highlighted that the project was originally intended to follow the Limited Tendering Method, but it appears that the process may have deviated due to perceived manipulation.

The ongoing issues with the 4G expansion underscore the urgent need for reforms in the bidding process to ensure transparency and integrity. Teletalk's struggles contrast sharply with the progress made by private telecom operators in Bangladesh-Grameenphone, Robi, and Banglalink-who have successfully expanded 4G services across the country.

These companies have established strong networks in both urban and rural areas, highlighting the significant delays Teletalk is facing. As the project continues to face delays, questions are being raised about Teletalk's ability to remain competitive and meet the growing demand for mobile broadband.

If the current bidding process is allowed to continue without reform, it could set a concerning precedent for future government projects and erode public trust in procurement procedures.

Professor Dr Forkan Uddin, a member of the Technical Evaluation Committee, emphasised the importance of adhering to the project's Public Procurement Rules (PPR).

"What is in the project's guidelines must be followed, and there is no room for deviation," he stated, underscoring the need for caution and integrity in the bidding process.

In light of these challenges, experts said it is clear that Teletalk must reassess its approach to ensure a transparent, fair, and competitive bidding process that ultimately delivers high-quality 4G services to all Bangladeshis.

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