Starlink Sparks Telecom Sector Shake-Up in Bangladesh

To make Bangladesh’s telecommunications sector more attractive for foreign investment, the government is determined to introduce Starlink, the satellite-based internet service, at any cost. Simultaneously, broadband and mobile operators must improve their service quality to remain competitive, warned Faiez Ahmed Tayyab, Special Assistant to the Chief Adviser and technologist in charge of the Ministry of Posts, Telecommunications, and Information Technology.

Speaking at a seminar titled "Ensuring High-Speed, Quality, and Affordable Internet at the Grassroots Level," organized by the Bangladesh Mobile Phone Consumers Association at the National Press Club on Sunday (March 9), Tayyab emphasized the need for price reductions and infrastructure reforms. “I am telling all layers of the sector, data prices must be lowered. Everyone must work together for reform. Personally, I do not consider 5 Mbps as broadband. I believe broadband should start at speeds above 20 Mbps.”

During his keynote speech, telecommunications expert Mustafa Mahmud Hossain laid out the challenges and opportunities in the sector.

In his address, Faiez Ahmed Tayyab urged all service providers to ensure quality. “To compete against Starlink, domestic entrepreneurs must take their own protective measures. Everyone needs to enhance their service standards.”

Addressing mobile service providers, he stated, “There are numerous complaints against MNOs (Mobile Network Operators), and they must acknowledge them.”

Regarding National Telecommunication Transmission Networks (NTTNs), Tayyab asserted, “NTTNs should engage in fiber leasing rather than bandwidth trading. Additionally, the fiber optic infrastructure of state-owned entities such as BCC, PGCB, and BTCL must be fully utilized.”

He further stressed that Internet International Gateways (IIGs) would be subjected to rigorous bandwidth monitoring.

Commenting on spectrum pricing, he remarked, “Bangladesh has one of the highest spectrum costs globally. I have previously highlighted this issue. I will work on reducing spectrum prices. However, the Ministry of Finance may resist such moves, as lowering spectrum costs could reduce revenue. Yet, increased internet usage will drive socio-economic growth. It is up to the MNOs to convince the National Board of Revenue (NBR) about this necessity.”

Tayyab also urged mobile operators to expedite the shutdown of 2G and 3G networks. “Maintaining 2G, 3G, and 4G simultaneously increases costs. These older technologies should be phased out quickly. Start planning for 5G deployment.”

Indicating upcoming regulatory changes, he warned, “New directives will be issued starting next week. Initially, we will not implement executive orders, but if policy interference occurs or bureaucracy is encouraged, we will enforce them.”

Additionally, discussions are underway on issuing new DTH (Direct-to-Home) licenses beyond Akash, the only current service provider.

Tayyab also issued a stern warning regarding licensing, stating, “No new licenses or renewals will be granted to three categories of businesses. Arbitrary policies and draconian laws will be abolished and reformed. Entities accused of money laundering will not be granted international licenses, although they may continue lawful domestic operations. Those who have been deprived of licenses for the past 15 years will be given priority.”

In his remarks as a special guest, BNP's International Affairs Committee Special Assistant Engineer Ishraq Hossain emphasized that “Internet and access to information are basic rights, and BNP will always support the government in ensuring these rights.” He criticized previous administrations for corrupting the telecom sector, leading to non-functional policies. “Bureaucratic resistance may arise, but with public support, necessary reforms will be implemented.”

Hossain also asserted that reforms across various sectors have taken place since August 5, but no significant changes have been made in the telecom sector. “The previous government used this sector for corruption and had the power to shut down the internet at will. A white paper should be published detailing the corruption in the telecom sector over the past 16 years. Monopolies and duopolies will no longer be tolerated. Future reforms in the ICT sector will prioritize public interest, not business conglomerates.”

Telecom expert Mahtab Uddin criticized the Bangladesh Telecommunication Regulatory Commission (BTRC) for its inaction. “BTRC should have taken certain steps. Instead of blaming each other, we must focus on our own responsibilities. Companies with multiple licenses create an unfair playing field, making it difficult for single-license holders to compete.”

Former BASIS President Fahim Mashroor highlighted taxation as the main obstacle to lowering internet prices. “Currently, 60% of the cost of 100 BDT worth of data goes to the government as taxes. If the government does not lower taxes, internet prices cannot be reduced. Even after six months, the interim government has yet to address the monopoly of NTTNs.”

Saiful Islam Siddique, Managing Director of ICC Communication and former Senior Vice President of ISPAB, pointed out market inequalities. “We have extended broadband connectivity to remote areas, yet we face an unfair market. Two years ago, ISP licenses were overhauled and divided into four layers. Now, we hear they are planning another review. Many small entrepreneurs invested in digitalizing rural areas, some selling family assets to fund their ventures. Yet, we face ongoing regulatory uncertainty. The government must ensure security for our investments and avoid abrupt policy changes.”

Taimur Rahman, Chief Corporate Affairs Officer of Banglalink, advocated for a unified licensing system. “Like developed nations, we want a ‘One Bill, One License’ model. We are willing to collaborate with ISPs.”

Shah Md. Fazle Khoda, Director of Economic Regulation at Robi Axiata, emphasized cooperation over competition. “We aim to advance through collaboration, which is why we have not pursued ISP licenses.”

Grameenphone Limited’s Senior Director of Corporate Affairs, Hossain Sadat, noted regulatory barriers to service expansion. “We want to provide quality services, but licensing restrictions pose challenges.”

Telecom and artificial intelligence expert Rakibul Hasan highlighted how global tech giants are reshaping infrastructure. “Companies like Google and Facebook are investing in physical infrastructure, such as Google’s undersea cables. This means major content providers want to reach consumers directly. As a result, internet bandwidth costs will decrease when they establish edge data centers in Bangladesh. The integration of content delivery networks (CDNs) with 5G radio access networks will further optimize bandwidth usage.”

The discussion featured key stakeholders, including Dr. Mohammad Imadur Rahman, Managing Director of Bangladesh Satellite Company Limited; Aminul Hakim, President of the IIG Association; Lt. Col. (Retd.) Helal Uddin, Vice Chairman of AB Party; Rafel Kabir, President of BASIS Associate Committee; Khaled Abu Nasir, former Director of the Bangladesh Competition Commission; ISPAB President Imdadul Haque; Intercloud CEO Hasibur Rahman; and freelancer Mohammad Ali.