VEON mulls a sweeping expansion in Bangladesh

Global digital operator VEON is preparing for a sweeping expansion drive in Bangladesh that could reshape the country's telecommunications, digital infrastructure and financial services sectors, positioning the South Asian nation as one of the group's most important future growth markets.

The Dubai-headquartered company, which owns mobile operator Banglalink, has recently informed the government about its intention to undertake a new wave of investments spanning mobile connectivity, broadband infrastructure, satellite communications, digital banking and mobile financial services.

The move comes after VEON invested more than US$2.5 billion in Bangladesh over the past 21 years and contributed over US$4 billion to the national exchequer through taxes, fees and spectrum payments.

In a formal proposal submitted to the government, the company said it is prepared to deploy an immediate US$100 million in fresh capital, subject to regulatory approvals and a predictable investment environment.

"VEON and Banglalink believe that Bangladesh has the potential to become one of Asia's most dynamic digital economies and are committed to supporting that vision," said Johan Buse, Chief Executive Officer of Banglalink.

"Building on more than US$2.5 billion invested in Bangladesh over the past 21 years, we are keen to make significant investments in the near term, supported by a conducive and predictable regulatory environment."

The proposed investments form part of VEON's broader strategy of transforming telecom operators into digital service platforms that combine connectivity, financial services and digital applications.

VEON currently serves nearly 160 million customers across six countries and has increasingly focused on digital ecosystems that integrate mobile communications with fintech, entertainment, education and healthcare services.

The most significant element of the proposal involves a potential strategic combination with Teletalk, the country's only state-owned mobile operator.

According to the proposal, the partnership could facilitate active network sharing, reduce duplication of infrastructure investments and accelerate network expansion in underserved rural and remote regions.

For years, Teletalk has struggled to compete effectively against private operators despite possessing valuable spectrum assets.

Banglalink has also proposed a partnership with the state-owned Bangladesh Telecommunications Company Limited (BTCL) to leverage the company's nationwide fibre backbone and fixed-line infrastructure.

Such collaboration could enable the launch of bundled digital offerings combining mobile, broadband, television and enterprise connectivity services, commonly known as triple-play and quadruple-play packages.

Market analysts note that convergence between mobile and fixed-line services has become a defining trend across many digital economies, but remains largely underdeveloped in Bangladesh.

Beyond telecommunications, VEON appears determined to strengthen its position in Bangladesh's rapidly expanding digital financial services market.

The company has formally expressed its willingness to acquire or establish a strategic partnership with Nagad, the country's second-largest mobile financial services provider.

Its willingness comes at a time when Bangladesh's mobile financial services sector is attracting growing attention from international investors amid rising digital payment adoption and efforts by regulators to modernise the financial ecosystem.

To support its fintech ambitions, Banglalink has already secured a No-Objection Certificate (NOC) from Bangladesh Bank to operate as a Payment Service Provider (PSP).

The company has also sought a digital bank licence, signalling plans to evolve from a telecom operator into a full-scale digital financial services player.

If approved, a digital banking operation would allow Banglalink and its parent company to offer a wider range of financial products, including digital deposits, payments, lending and other technology-driven banking services.

The move mirrors VEON's strategy in several international markets, where telecom operators increasingly serve as gateways to digital financial ecosystems.

VEON has additionally gained regulatory changes recently that would facilitate the introduction of Direct-to-Cell (D2C) satellite connectivity using Starlink technology.

The company has already launched similar services in markets such as Ukraine and Kazakhstan, allowing standard mobile phones to connect directly to satellites in areas beyond conventional network coverage.

It is currently running pilot projects in the country's different hard-to-reach areas.

If implemented full-fledged in Bangladesh, the technology could significantly improve connectivity in disaster-prone coastal regions, remote islands and hard-to-reach rural communities where terrestrial infrastructure remains expensive or difficult to deploy.

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