Bangladesh's telecommunications sector stands at a pivotal juncture as a regulatory-policy upgrade with major changes gets underway. Bangladesh Telecommunication Regulatory Commission (BTRC) has unveiled proposed 'Telecommunication Network & Licensing Regime Reform Policy 2025'. Aimed at dismantling the existing complex and fragmented licensing framework, the policy seeks to simplify network architecture, encourage efficiency, attract foreign investment, and improve service quality for consumers. At the heart of this transformation is a bold vision to build a digitally advanced, inclusive, and investor-friendly telecommunications ecosystem aligned with the country's broader 'Smart Bangladesh' agenda.
Central to the BTRC's proposal is a shift toward a service- and technology-neutral model, replacing overlapping layers of licences with three streamlined categories. Access Network Service Providers (ANSPs) would integrate mobile and fixed-line services, including broadband and digital services, into a single operational stream. National Infrastructure and Connectivity Service Providers (NICSPs) would build and lease telecoms infrastructure-fiber-optic cables, towers, and transmission systems-ensuring optimal resource use and expanded reach into underserved areas. International Connectivity Service Providers (ICSPs) would take charge of managing submarine cables, IP transit, and cross-border data movement, replacing existing licensing categories like International Gateway (IGW) and International Internet Gateway (IIG). The BTRC argues that this consolidated structure would reduce costs, foster competition, and open new doors for innovation and foreign investment. Under the draft proposal, foreign ownership limits would be increased to 70 per cent for NICSPs and 49 per cent for ICSPs. Proponents argue this is a much-needed reform to attract technical expertise and capital, thereby boosting network flexibility and competitiveness.
However, the proposed changes have sparked an intense debate across the telecoms industry. Local players, particularly ICX, IGW, and ISP operators, warn that the policy may unintentionally pave the way for market dominance by a handful of large mobile-network operators (MNOs), many of which already have significant foreign ownership. With the phasing out of existing licences, these stakeholders fear the loss of nearly a hundred locally owned businesses, threatening jobs for thousands of engineers and jeopardizing around Tk 50 billion in investments. The elimination of Interconnection Exchanges (ICXs) alone, they argue, could cost the government up to Tk 3 billion annually in revenue. In addition, revenue from international machine-generated SMS traffic, if not routed through dedicated gateways, could diminish substantially.
There are also growing fears about creating an oligopoly, with the proposed topology favouring mobile operators to expand freely into spaces historically served by smaller ISPs. Critics argue that such moves could lead to unfair competition and severely undercut smaller firms, many of which serve niche markets or rural communities that the big players typically neglect.
Beyond the economics, the policy's national security implications have not gone unnoticed. Stakeholders from the Nationwide Telecommunication Transmission Network (NTTN) sector have raised concerns about critical infrastructure falling under foreign control, calling for international scrutiny and a possible review by the International Telecommunication Union (ITU). While the BTRC maintains that its reform is driven by outdated infrastructure and the need to eliminate redundancy, detractors argue the real issue is not a lack of technology but rather inconsistent policy implementation. The reform proposal does carry progressive elements. It outlines a transition from licence-heavy oversight to performance-driven regulation, with strict Key Performance Indicators (KPIs) for service quality. The BTRC also emphasizes infrastructure sharing and proposes to lay fiber networks underground, signaling a longer-term vision for durability and efficiency.
As Bangladesh moves closer to LDC graduation, its digital infrastructure will play a critical role in economic diversification and global integration. But to succeed, reform must not come at the cost of local enterprise, jobs, and sovereignty. A balanced approach-one that promotes innovation while protecting domestic interests-is essential. Transparent dialogue, comprehensive impact assessments, and genuine stakeholder engagement will be key to navigating this delicate transition and building a telecoms ecosystem
that is not only smart but also sustainable and inclusive.
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