Government Targets Discipline in Telecom Sector With New Licensing Model

To restore discipline in mobile voice communication and internet services, the government is abolishing several intermediate licenses. In a draft policy prepared by the Bangladesh Telecommunication Regulatory Commission (BTRC), the current 22 types of licensing systems are being reduced to three tiers.

For internet services, mobile and broadband operators receive bandwidth from submarine cables and International Terrestrial Cables (ITC) through International Internet Gateways (IIG). The Nationwide Telecommunication Transmission Network (NTTN) operators provide fiber services for bandwidth transmission. Tower companies install towers for mobile operators.

In mobile voice communication, call traffic between operators is exchanged through Interconnection Exchanges (ICX). Meanwhile, data traffic between ISPs is exchanged through the National Internet Exchange (NIX).
BTRC considers the existing 22 categories of telecom licenses unnecessary.

BTRC Chairman Major General (Retd.) Emdad Ul Bari said, “There has been an unnecessary issuance of licenses through favoritism, creation of redundant service categories, and the institutionalization of VoIP-related irregularities.”

Given this situation, the draft of the “Network and Licensing Regime Reform Policy 2025” brings down 22 types of licenses into three tiers. Licenses for IGW, IIG, NIX, and ICX are proposed to be abolished. The services under these categories may be allowed to be provided directly by mobile operators and internet service providers (ISPs).

Robi’s Chief Corporate and Regulatory Affairs Officer Sahed Alam said, “BTRC’s newly proposed licensing framework is an excellent initiative to move away from the extreme disorder of the past. There is no doubt about that.”

Licensing requirements will no longer be mandatory for call centers, vehicle tracking, and TVAS (Telecom Value-Added Services). Satellite internet services like Starlink will remain under a special category.

Currently, around 24 IGW operators handle international call termination in the country. IGW and IIG operators believe the proposed draft leaves no future for domestic operators.

Asif Rabbani, President of IGW Operators Forum, said, “There seems to be no future for local companies. It feels like the entire service is being handed over to multinational corporations.”

IIGAB President Aminul Hakim said, “We hope the final policy that will be published preserves the interests of local operators, ensured by BTRC or the government.”

BTRC’s new policy will be implemented in three phases by 2027.