Bangladesh has rejected a proposal for the transit of bandwidth to India's northeastern Seven Sisters states, marking a pivotal moment in the region's digital infrastructure landscape.
The project, spearheaded by Summit Communications and Fiber at Home in collaboration with India's Bharti Airtel, promised to enhance internet connectivity for the Seven Sisters, where geographical challenges and long distances to existing submarine cable stations have long hindered service quality.
Using Bangladesh as a transit route would have drastically reduced the distance for internet traffic by 3,700 kilometres, cutting latency by 37 milliseconds and significantly lowering costs.
Summit and Fiber at Home had planned to establish a terrestrial cable landing station (TCLS) at Akhaura, connecting to Bangladesh Submarine Cable Company's landing stations in Cox's Bazar and Kuakata, creating a streamlined pathway for international connectivity.
The BTRC had initially decided to grant approval for the project, subject to final authorisation by the Department of Telecommunications.
Earlier, Bharti Airtel had approached Bangladesh's Ministry of Foreign Affairs regarding the transit, prompting the ministry to forward the matter to the Department of Telecommunications for action, which was then referred to the BTRC for consideration.
However, this time, the BTRC did not act independently in revoking the approval. It also annulled the letter sent previously to the Department of Telecommunications recommending the transit.
Senior officials from the Department of Telecommunications, BTRC and other related organisations confirmed this development to The Financial Express on Monday. Critics argue that the project would have disproportionately benefitted private companies at the expense of national interests.
Aminul Hakim, president of the International Internet Gateway Association Bangladesh (IIGAB), also highlighted these concerns.
He contended that the initiative was structured in a way that left the government at a disadvantage. "Bangladesh would not have benefitted from this transit. Two ITC operators would have benefitted," he said.
They tactfully entered into an understanding where there was no transaction to buy bandwidth from India as ITC and charge for this transit. As a result, the government would lose huge revenue, he said.
Government officials also expressed skepticism about the project's impact on Bangladesh's regional aspirations.
Sources at the foreign ministry pointed out that the plan could weaken Bangladesh's position as an emerging regional internet hub, while bolstering India's dominance in the sector.
Additionally, the lack of prior bilateral discussions raised concerns about transparency and the project's overall viability.
Industry experts also warned that facilitating IPLC transit for Indian operators could overshadow Bangladesh's potential to export bandwidth to neighbouring regions like Myanmar and China's northwest.
Fiber at Home Chairman Moinul Haque Siddique, however, told the media that Bangladesh missed opportunity to establish itself as a Southeast Asian internet hub. He noted that the country's high domestic bandwidth consumption-currently 90 per cent of its capacity-results in significant spending on international bandwidth.
By transitioning into a regional bandwidth exporter, Mr Siddique argued that Bangladesh could attract global tech giants like Google, Akamai and TikTok, enhancing data flow and positioning the country as a key player in the region's digital ecosystem.
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