Telecom Turmoil: New Technology Sparks Industry Concerns
Starlink Trial and DWDM Technology Raise Questions Over Local Industry's Future
While preparations are underway to test Starlink’s internet service in Bangladesh via satellite, another development is shaking the country’s telecom sector. In Old Dhaka, mobile network providers have begun experimental use of Dense Wavelength Division Multiplexing (DWDM) machines, integrating mobile networks with optical fiber. This advancement enables mobile operators to provide both voice and internet services via the same infrastructure, raising serious concerns among local telecom businesses, broadband providers, and thousands of semi-skilled internet professionals.
The Bangladesh Telecommunication Regulatory Commission (BTRC) is reportedly preparing to authorize mobile operators to use DWDM machines, a move that has alarmed businesses at every level, from National Telecommunication Transmission Network (NTTN) operators to internet service providers (ISPs). Industry insiders fear that granting this approval will allow mobile operators to establish their own transmission networks and eventually enter the broadband internet market, directly competing with ISPs.
Industry analysts warn that such a decision could push domestic transmission service providers and broadband ISPs toward extinction. Additionally, thousands of Bangladeshi engineers and telecom workers face potential unemployment as foreign-owned telecom companies consolidate control over the sector. Although the move is expected to reduce internet costs initially, experts caution that it might eventually hand over the country’s entire internet ecosystem to a foreign syndicate, which could then manipulate prices at will. Furthermore, the security of national data may come under threat, as control over transmission infrastructure could shift into foreign hands.
From 2012 to 2021, mobile operators imported and installed DWDM machines under BTRC’s approval, integrating them into fiber networks. In 2021, this authorization was extended to fiber transmission companies. However, mobile operators are now seeking to regain control over DWDM technology, particularly as Bangladesh moves toward 5G deployment.
Market analysts recall that in 2008, under the caretaker government, three mobile operators and ISPs became heavily dependent on a foreign-owned mobile operator due to monopolization of transmission and bandwidth supply. At the time, two major mobile operators had to pay approximately BDT 1.5–2 million per month per circuit for transmission services. Similarly, ISPs had to pay around BDT 10,000 per Mbps for bandwidth transportation. Moreover, for interconnection, the dominant operator limited the other three operators to just 100 sharing circuits, making network access difficult for their customers, causing widespread connectivity issues.
Additionally, fiber optic service expansion was restricted, leading to a widening digital divide. To address this, in 2008, the caretaker government introduced a telecom policy based on the Telecommunications Act of 2001, establishing a fair value chain for the industry. Under this framework, licenses were granted for specific services: NTTN for transmission services, Interconnection Exchange (ICX) for call routing, International Internet Gateway (IIG) for wholesale bandwidth distribution, and International Gateway (IGW) for international call termination.
This restructuring encouraged domestic investors to expand transmission and broadband services. As a result, transmission service costs per circuit dropped from BDT 1.5 million to BDT 50,000, while internet bandwidth transportation costs declined from BDT 10,000 to BDT 300 per Mbps. Furthermore, the creation of a common transmission network ended the dominance of a single mobile operator, leading to a reduction in voice call rates from BDT 7 per minute to BDT 1 per minute.
Investigations reveal that BTRC’s decision to grant separate service licenses in 2008 created a fair value chain, with specific guidelines for each sector. DWDM machines—key components in transmission services—were restricted to transmission service providers, whose primary customers were mobile operators. If mobile operators are now allowed to use DWDM technology themselves, transmission companies will lose their biggest clients, putting nearly 15 years of investment at risk. This could lead to the unemployment of around 10,000 engineers and workers in the transmission and broadband sectors.
In recent years, foreign-owned mobile operators in Bangladesh have already reduced their local workforce, bringing the proportion of Bangladeshi engineers and staff below 50%. If they gain control over DWDM technology, employment opportunities for Bangladeshi professionals in the telecom sector will shrink even further.
Industry sources report that over the past 15 years, two mobile operators have built more than 15,000 kilometers of transmission networks—an indication that they have been preparing to enter the transmission and broadband business illegally. These companies now aim to recover their investment from customers. Notably, foreign-owned mobile operators have not made direct foreign investments in Bangladesh for almost a decade. Instead, they have expanded their networks using local bank loans and profits earned from operations in the country.
Exploiting policy loopholes, these operators have allegedly built unauthorized transmission networks, raising concerns among domestic investors. Despite repeated calls from local businesses for a technical investigation, BTRC has not conducted any such inquiry.
Experts argue that before granting mobile operators permission to use DWDM technology, BTRC should conduct a comprehensive technical investigation. Such an investigation would reveal whether foreign-owned operators have unlawfully built transmission networks, avoided foreign investment obligations, or manipulated pricing structures. It would also shed light on persistent issues such as frequent call drops and slow mobile internet speeds.
Based on these findings, BTRC could then make an informed and transparent decision regarding the future of the telecom sector. However, rushing into a decision without addressing these concerns could have disastrous consequences for the country’s telecom industry.
BTRC sources confirm that the commission has repeatedly attempted to revise the NTTN guidelines over the past decade, but mobile operators have obstructed these efforts. A set of recommendations exists on how to amend the guidelines to ensure a level playing field for all stakeholders and to lower costs for consumers. However, instead of following these recommendations, BTRC previously attempted to introduce an infrastructure-sharing policy, which failed due to widespread criticism. Now, the commission appears to be pushing the DWDM policy as an alternative approach.
On Monday, BTRC reportedly discussed the issue in a commission meeting. However, no official statement has been released regarding whether the approval has been granted. One unnamed official stated, "At present, data security is the biggest concern. In most countries, including several neighboring nations, transmission networks and national data flow remain under local control. Allowing foreign-owned mobile operators to dominate the sector through DWDM usage could jeopardize Bangladesh’s data security in the long run."
