ICX removal could harm economy and digital security, experts warn

Removing the Interconnection Exchange (ICX) from Bangladesh's telecom architecture could seriously undermine national interests, reduce government revenues, increase unemployment, and compromise digital security, industry experts and stakeholders have warned.

These concerns were raised at a workshop titled 'Draft Telecom Reform Policy 2025: Relevance of ICX', hosted by the Telecom and Technology Reporters Network Bangladesh (TRNB) on Thursday in a city restaurant.

The event brought together policymakers, engineers, telecom operators, and other stakeholders for an open dialogue on the future of the telecom industry.

TRNB President Samir Kumar Dey moderated the discussion, while General Secretary Masuduzzaman Robin formally inaugurated the event.

Brigadier General (Retd) Mustafizur Rahman, President of the Association of Interconnection Exchange Operators of Bangladesh (AIOB), described the ICX as the telecom sector's "third eye."

He warned that transferring this critical infrastructure to foreign entities would endanger the country's revenue stream, domestic innovation, and national security.

"We have world-class engineers who built this telecom infrastructure. But now, our sector is being handed over to foreign interests. New telecom topologies are being introduced at the cost of domestic stakeholders," he said. "This will reduce government revenue, increase unemployment, and even risk a national security crisis."

AIOB Treasurer Brig Gen (Retd) Khurshid Alam echoed the concern, highlighting that just four months ago, the industry invested Tk 1.3 billion (Tk 130 crore) in upgrading to the latest telecom technology, as per government directives.

"Now that investment is at risk of being wasted due to this abrupt policy shift," he said.

The draft amendment to the Telecommunications Act, currently under review by the Bangladesh Telecommunication Regulatory Commission (BTRC), proposes eliminating the ICX licensing structure, allowing mobile operators to operate directly at the gateway level.

Stakeholders argue that such a move would increase illegal VoIP operations, decrease transparency, and undermine existing revenue collection mechanisms.

Ahmed-ur Rahman Romel, Head of Operations at Agni Systems Limited, pointed out that the government is already losing Tk 740 million annually in unaccounted SMS traffic due to ICX bypassing. "Since July, hundreds of crores of SMS have been exchanged daily through ICX, depriving the government of Tk 11.5 million in revenue every day.

"If routed properly through ICX, the government could earn an additional Tk 740 million annually," he said.

ICX currently plays a vital role in routing international voice calls from International Gateways (IGWs) to domestic networks while maintaining oversight through digital surveillance. Experts noted that this system is instrumental in combating grey traffic and illegal VoIP calls, which helps ensure revenue assurance and protects national interests.

Speakers also highlighted the economic feasibility challenges faced by ICX operators. Of the Tk 2.40 earned per mobile call, ICX operators receive just 4 paisa-2 of which go to BTRC-leaving only 1 paisa per call for the companies, which they say is insufficient to cover operational costs.

If ICX is dismantled, the country's more than 50 access network operators would have to individually establish interconnections, increasing costs and technical complexity. Experts warned that such fragmentation would open the door to more illegal and unmonitored telecom traffic.

The event was also attended by top industry figures, including Mustafa Mahmud Hossain, Chief Operating Officer of VoiceTel Limited; Hasibur Rashid, Director General of Bangla ICX Limited; Brig Gen (Retd) Md Abdul Hannan, CEO of BanglaTelecom Limited; and M Nurul Alam, CEO of Imam Network Limited, along with representatives from leading ICX companies.

Speakers unanimously called for preserving the ICX framework and urged policymakers to reconsider the proposed reforms in favor of a balanced and secure telecom development strategy.

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