HomeCommerceVeon to Launch Satellite Connectivity in Bangladesh

Veon to Launch Satellite Connectivity in Bangladesh

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Global telecom investor Veon is set to launch direct-to-cell satellite connectivity in Bangladesh, enabling smartphones to connect directly to satellites in collaboration with Starlink and its subsidiary, Banglalink.

Kaan Terzioglu, the CEO of Veon, mentioned in a recent interview with The Daily Star that the company plans to implement the same technology currently in use in Ukraine and Kazakhstan.

The aim is to offer direct-to-device connectivity similar to that in Ukraine, where every 4G-capable phone can link to satellites orbiting more than 400 kilometers above, Terzioglu explained.

Unlike conventional mobile networks that depend on ground-based towers, Starlink’s direct-to-cell technology utilizes satellites as cell towers in space. This innovation allows standard mobile phones to connect directly, extending coverage to areas lacking ground infrastructure.

According to Terzioglu’s statement to Reuters, Veon is the largest partner of Starlink in terms of customer base for direct-to-cell services.

In Ukraine, the technology has already served nearly five million users in just four months, facilitating the transmission of over seven million messages through the network.

In 2024, Ukraine’s leading operator, Kyivstar, which is also a Veon subsidiary, partnered with Starlink to introduce the satellite-to-phone service. Veon reported a successful trial of the service by its operator Beeline in Kazakhstan in December.

Terzioglu revealed that after Bangladesh, the rollout will extend to Uzbekistan and Pakistan.

Officials at Banglalink confirmed that discussions are progressing towards finalizing a partnership with Starlink for Bangladesh.

The implementation of direct-to-cell connectivity in Bangladesh through this technology is expected to enhance coverage, especially in underserved and disaster-prone areas, stated a Banglalink official.

**CHALLENGES FOR BANGLALINK IN THE MARKET**

The move comes at a challenging time for Banglalink, which has been striving to strengthen its market presence despite operating in the country for more than twenty years and investing approximately $2.5 billion.

As the third-largest telecom operator in Bangladesh, Banglalink is yet to achieve profitability, while market leader Grameenphone continues to dominate the earnings, and Robi Axiata has begun to turn profitable in recent years.

Banglalink currently serves about 37.5 million subscribers, holding a market share of 20.18%, although it has lost around 6 million users over the past three years.

Data from the Bangladesh Telecommunication Regulatory Commission as of December 2025 shows that Grameenphone leads the market with 84.1 million subscribers (45.27%), followed by Robi Axiata with 57.4 million subscribers (30.86%), and state-owned Teletalk Bangladesh with 6.8 million subscribers (3.66%).

Despite these challenges, Terzioglu has reiterated Veon’s commitment to investing in Bangladesh, particularly in the telecommunications and digital sectors.

Veon recently teamed up with the Bangladeshi conglomerate Square and applied for a digital banking license, following a similar strategy to Malaysia’s Axiata, which holds a majority stake in Robi Axiata.

Industry experts anticipate significant obstacles in rolling out satellite-to-phone services in Bangladesh due to stringent centralized telecom regulations.

Current regulations restrict public access to satellite telephony, mandate traffic routing through local gateways, and impose conditions on lawful interception, shutdown authority, spectrum licensing, and device approval.

Moreover, the regulatory framework favors existing mobile operators with demanding licensing requirements, presenting substantial barriers to entry.

Nonetheless, experts believe that the service has the potential to revolutionize connectivity in Bangladesh, particularly in rural and disaster-prone coastal areas. These regions frequently face disruptions in communication networks during floods and cyclones, disconnecting entire areas for extended periods.

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