Despite suffering heavy losses, the state-run telecom operator Teletalk is increasing its investments one after the other. Earlier, Teletalk implemented a project at a cost of Tk 2,080 crore with a Chinese loan, but no tangible result could be seen. Yet, plans are afoot to increase investments in this sector. This time, Teletalk is going to take up another project, at a cost of Tk. 675 crore, for expanding 3G and 2.5G services. It was mentioned in the  development project proforma (DPP) that Teletalk Bangladesh Ltd, under the Posts and Telecommunications Division, with financial support from China, has completed the first phase of the ‘Introduction of 3G Technology and Expansion of 2.5G Network’.
The project was completed by June 2 last year at an estimated cost of Tk. 2,080 crore. Of the total loan, China had given Tk. 1,656 crore. But it was not possible to complete the 3G services in all upazilas and 2.5G in all unions in that phase. So, initiatives have been taken to launch the second phase of the expansion of the 3G and 2.5G networks. The state-run telecom company has been cumulatively counting its losses, but over the past five years, investments in Teletalk have totalled Tk. 2,342 crore. The losses of the company amounted to Tk. 376 crore during this period of time. Though the company’s losses are continuing to mount, it has taken up various plans to invest Tk. 6,000 crore for the expansion of the network up to the village level. It has made plans to take credit from foreign companies and attract partnerships here. The state minister for the posts and telecommunications ministry, Tarana Halim, said the network and services would be upgraded if there are bigger investments. Others will come forward to provide quality services in this sector.  She further said that apart from investments, initiatives have been taken to increase the business capacity of the organisation. If these steps work out properly, Teletalk will occupy a substantial market, she said, pointing out that the organisation would then be able to recover its losses. According to Teletalk sources, over the last five fiscal years, Tk. 2,342 crore had been invested in the company to expand its network since it was established.
The investment in FY 2010–11 was Tk. 148.96 crore, while the investment rose to Tk. 889.92 crore in the next year. In FY 2012–13, investment was Tk. 549.65 crore, and in 2013–14, it was Tk. 489.40 crore. The investment in FY 2014–15 was Tk. 264.87 crore.  The revenue income of Teletalk in the last five fiscal years against investments was Tk. 3,132 crore. Against this income, the total expenditure of the company was Tk. 3,509 crore, resulting in a loss of Tk. 376 crore.
A comparative study of the income and expenditure of Teletalk in the last five years revealed that the company registered a profit in only a single fiscal year. In 2010–11, it had revenue income of Tk. 298.11 crore and expenditure was Tk. 313.48 crore, with a loss of Tk. 17.50 crore. In 2011–12, its income was Tk. 357.28 crore and expenditure was Tk. 310.90 crore, showing a profit of Tk. 46.38 crore. But in 2012–13, it suffered a loss of Tk. 181 crore in the fiscal year 2012–13 when the revenue income was Tk. 673 crore and expenditure was Tk. 854.78 crore. In 2013–14, the income was Tk. 968.96 crore, and expenditure was Tk. 989.83 crore, with a loss of Tk. 20.86 crore. In 2014–15, the income was Tk. 834 crore and the expenditure was Tk. 1,037 crore, with a loss of Tk. 202.58 crore. Sources in the posts and telecommunications ministry said that it required some Tk. 6,000 crore for the expansion of the network. Three projects would be completed with this money. Teletalk took up a project with its own financing on 1 July 2015.
Under the project, plans have been taken to implement the core network, including 2,000 2G networks and 1,500 3G Node B through a sharing of 80 per cent in the tower sharing system. The estimated cost of the project would be Tk. 700 crore. The process of implementation is going on. A total of 1,200 Node B for transmission of 3G and 500 BTS towers will be set up for the expansion of 2.5G under the new project. Attempts to take loans from China were made with the initiatives of the Economic Relations Division (ERD) for the project. But when no response was forthcoming from China, initiatives were taken to implement the project with local financing. For the total of Tk. 675 crore, a total of Tk. 607.79 crore will come from the exchequer, while Teletalk will finance Tk. 68 crore.

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