THOUGH the launch of the Bangabandhu-1 Satellite in 2018 was hailed as a major achievement for Bangladesh, symbolising the country’s entry into the elite space club, six years later the project now seems to be a financial misstep rather than the anticipated success.
A newspaper report on Sunday said that despite costing the nation a staggering Tk. 30 billion, the satellite has struggled to generate the expected revenue, leaving it a significant burden on state resources.
The satellite, now a white elephant for the nation, was a luxury of the ousted despot Sheikh Hasina and her family enterprise.
Operated by the Bangladesh Satellite Company Ltd (BSCL), the satellite’s financial outlook is grim. While BSCL initially claimed a profit of Tk. 8.5 billion for FY 2021-22, a closer look reveals a different story.
When depreciation — amounting to Tk. 1.86 billion annually — is factored in, the company posted a substantial loss of Tk. 660 million.
This pattern of hidden losses through creative accounting practices raises serious concerns about the long-term viability of the satellite.
As per the report, the root of the problem lies in poor planning and execution.
The satellite’s transponders, essential for revenue generation, have faced significant underutilization.
While domestic usage has been promising, international sales — particularly in neighbouring countries — have fallen far short of expectations.
Only 60 percent of the satellite’s foreign transponders are in use, highlighting a failure in market expansion, largely due to flawed frequency coordination with other nations.
As most of the mega projects were taken by the Hasina regime for their interest, either for name and fame or for encroaching bucks, they had failed to envision Bangabandhu-1 Satellite as a source of foreign income.
The projections were overly optimistic. With just 59 percent of the C-band and 25 percent of the Ku-band sold, the satellite is far from meeting its revenue potential.
The nation continues to rely on loans to sustain its operations, with losses predicted to exceed Tk. 1,500 crore by the end of its 15-year lifespan.
Undoubtedly, the Bangabandhu-1 Satellite now represents a cautionary tale of mismanagement.
Moving forward, policymakers must prioritise accountability, transparent financial reporting, and thorough market assessments for future projects.
We call on the interim authority to either restructure the project or consider discontinuing it.
Without such measures similar initiatives risk becoming a burden on the nation’s resources.
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