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Bangladesh revamps telecom licensing and internet infrastructure

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Md Mojahidul Islam

In a landmark move to modernize its telecommunications landscape, the Bangladesh Telecommunication Regulatory Commission (BTRC) has unveiled a comprehensive draft policy titled “Telecommunication Network and Licensing Regime Reform Policy 2025”, signaling a sweeping overhaul of the country’s outdated licensing system and internet infrastructure.

Simpler Licensing, More Opportunities

The new framework aims to replace Bangladesh’s complex, multi-layered licensing structure, which has hindered investment and innovation. Under the proposed plan, the existing tangled system will be streamlined into three core licenses—covering mobile and fixed services, infrastructure like towers and fiber optics, and international connectivity—and two registration-based enlistments for smaller, local internet services and enterprise solutions.

This move is geared toward fostering a more investment-friendly, technology-neutral environment, allowing operators to deploy diverse services under a single license and adapt swiftly to market demands.

Breaking the Internet Barriers

Perhaps most notable is the proposal to eliminate four layers of internet data routing—namely the Interconnection Exchange (ICX), National Internet Exchange (NIX), International Gateway (IGW), and International Internet Gateway (IIG). This removal aims to enable direct internet data flow, cutting unnecessary intermediaries, reducing operational costs, and improving service quality.

Experts believe this will lead to faster speeds, better reliability, and lower prices for consumers, breaking down long-standing infrastructural hurdles.

Encouraging New Ventures

The policy also offers exemptions from licensing requirements for certain telecom services such as call centers, vehicle tracking systems, and value-added services like TV services. These can operate simply by registering, creating exciting opportunities for startups and entrepreneurs eager to innovate without heavy regulatory burdens.

A dedicated “Small Telecom Services” platform is also proposed, encouraging small-scale providers like VSAT operators and SMS aggregators, potentially spurring a wave of fresh startups in Bangladesh’s telecom sector.

Opening Doors to Foreign Investment

Recognizing the importance of international capital, the draft sets new ownership limits for foreign investors: up to 70% for National Internet Communication Service Providers (NICSP) and 49% for International Internet Communication Service Providers (ICSP). Industry insiders see this as a strategic move to attract more foreign investment, which can accelerate infrastructure development and introduce advanced technologies.

Clear Goals for a Smarter Telecom Future

The policy articulates seven core objectives, including establishing a simplified network ecosystem, fostering innovation, ensuring technological neutrality, improving consumer access, attracting global investments, and boosting competitiveness. The rollout is planned over three phases, beginning with policy approval in 2025, followed by licensing reforms in 2026, and complete transition by 2027.

Looking Ahead

If successfully implemented, these reforms could significantly enhance Bangladesh’s telecom infrastructure, lower costs for consumers, and make the market more attractive for international players. Industry experts are hopeful that the new policy will usher in a new era of faster, more reliable, and innovative telecom services across the country.

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