BTRC issues draft guideline to regulate, promote IoT services

In a move to regulate and foster growth of Internet of Things (IoT) services in Bangladesh, the Bangladesh Telecommunication Regulatory Commission (BTRC) has recently introduced a draft directive to create a supportive ecosystem for startups and attracting investments.
The initiative seeks to ensure the availability of secure, efficient, and cost-effective IoT services in the country.
The proposed guidelines aim to formalise the operations of commercial IoT service providers through an enlistment certification process.
This framework, aligned with the Telecommunications Act, will bring existing and future service providers under regulatory oversight, ensuring adherence to proper guidelines.

The directive also emphasises the need for a level playing field to enable domestic companies to build the capacity to compete in the IoT sector, while simultaneously attracting investments from international and local entities.
The guidelines envision a dynamic ecosystem where young engineers and technologists are encouraged to develop innovative startups leveraging IoT technologies.
The BTRC recognises the potential of IoT in transforming industries through intelligent systems that rely on sensors, data analytics, and remote management platforms.
By facilitating the development of new businesses centered on Fourth Industrial Revolution (4IR) technologies, the directive positions Bangladesh to harness the full potential of IoT.
A central feature of the proposed framework is the enlistment certificate for IoT service providers, initially valid for one year and renewable annually.
This requirement has sparked discussions among stakeholders, with some advocating for a three-year validity period to reduce administrative hurdles for startups.
To further support innovation, the BTRC has proposed a Regulatory Sandboxing Guideline to protect startups from anti-competitive practices by larger telecom operators, ensuring a nurturing environment for creativity and growth.
Eligibility criteria for IoT service providers include registration with the Registrar of the Joint Stock Companies and Firms in Bangladesh, possession of a trade licence, and compliance with the Companies Act, 1994.
Enlistment certificates, mandatory for all IoT service providers, come with specific financial obligations.
For large-scale providers, the application and processing fee has been set at Tk. 5,000, with an additional enlistment fee of Tk. 20,000. Annual renewals also require a payment of Tk. 20,000.
These fees are complemented by revenue-sharing requirements, which begin after the first two quarters of operation. Providers are obligated to share 5.5 per cent of their annual audited income with the Commission and contribute 1 per cent to the Social Obligation Fund (SOF).
For startups and small-scale providers, a more accessible fee structure has been introduced to encourage innovation and entry into the IoT sector. Application, enlistment, and renewal fees are uniformly set at Tk. 5,000.
BTRC has emphasised that all fees and charges are non-refundable and do not account for additional taxes or fees imposed by other government entities.
Companies must pay the required amounts within stipulated deadlines to avoid penalties. Late payments are subject to a penalty of 15 per cent per annum and must be cleared within 60 days of the due date. Failure to comply may lead to the cancellation of enlistment, with further legal action possible under the provisions of law.
The guidelines, which aim to ensure compliance while fostering innovation, also highlighted incentives for early-stage startups.
By waiving revenue-sharing and SOF contributions during the initial operational period, the Commission seeks to create a supportive environment for young engineers and technologists to develop groundbreaking IoT solutions.
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