Starlink, SpaceX's satellite-based internet service, is poised to enter Bangladesh, which could significantly transform the country's digital landscape.
To allow the satellite internet service, the Bangladesh Telecommunication Regulatory Commission (BTRC) is drafting guidelines, aiming to bridge the connectivity gap in remote and underserved areas.
However, with steep costs and looming competition from local internet providers, concerns remain about its affordability and long-term viability in the Bangladeshi market.
Over the past three years, Starlink has been in talks with the Bangladesh government, seeking approval to launch its satellite-based broadband services in the country. Initial hesitance from the telecom regulator delayed the process, but significant progress was made in 2023.
Last year, Starlink received approval to conduct technical tests through Bangladesh Satellite Company Limited (BSCL), showing promising results with download speeds of up to 150 Mbps.
Talking to the media after an October 21 meeting with Starlink's Director of Global Licensing Rebecca Slick Hunter, BIDA Executive Chairman Ashik Chowdhury said that if Starlink had been operational last July, internet blockades would have been less disruptive.
He also emphasized that the service could enable internet connectivity for rural schools and even remote freelancing hubs like the Sundarbans.
However, there are still hurdles to overcome before Starlink can begin operations. Discussions are ongoing, and while no firm commitments have been made, Mr Chowdhury expressed hope, stating, "We are trying, hope that I can give good news ahead."
Zakir Hossain Khan, Deputy Director (Media & Publications) of BTRC, said they are drafting Non Geostationary Orbit Satellite Service Operator Licence Guidelines.
The BTRC formed a committee last year to draft the guidelines.
The focus of the committee will also be on the 'lawful interception requirement,' which ensures that satellite internet providers comply with local security and surveillance laws.
This has been a key sticking point for the approval of Starlink and similar services, as the government seeks to balance national security interests with technological advancement.
One of the major concerns surrounding Starlink's entry is the price. While Starlink's technology has been proven to deliver high-speed internet even in the most inaccessible locations, its costs are considered prohibitive for the average consumer in Bangladesh.
The hardware needed to access Starlink costs $599 (approximately BDT 65,959), and the monthly service fee is around $120 (about BDT 13,213). In contrast, local broadband services offer 5 Mbps speeds for as low as BDT 500 per month, and mobile internet packages providing 30 GB of data cost between BDT 400-500.
Despite these pricing concerns, the demand for high-speed internet in rural areas remains strong.
Local internet service providers and telecom operators, however, are apprehensive. Md Emdadul Hoque, president of the Internet Service Provider Association of Bangladesh (ISPAB), questioned the need for satellite internet when local providers have already extended services to most parts of the country.
He said ISPAB members are reaching out to the most remote areas of the country and expressed concern that Starlink's entry could jeopardise their investments.
However, Robi Axiata Ltd's Chief Corporate and Regulatory Officer Shahed Alam welcomed the initiative.
He urged regulators to ensure a level playing field, particularly in terms of regulatory compliance and taxation, for all the service providers.
Starlink's potential impact on the local internet market is yet to be fully realised. On one hand, it promises to bring high-speed internet to remote and underserved regions, unlocking educational and economic opportunities.
On the other hand, the high cost of its services and competition with more affordable local providers raise questions about its commercial viability in Bangladesh.
As Bangladesh continues to build its digital infrastructure, with the Bangabandhu Satellite-1 already in orbit and plans for a second satellite underway, Starlink's entry signals the beginning of a new phase in the country's internet ecosystem -- one that could redefine connectivity for millions, especially those in the most remote corners of the nation.
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